While everyone’s talking about Bitcoins, you may have also heard about Ethereum. So what is it?
Ethereum is a decentralised platform using blockchain technology that runs on smart contracts – a code that lets you exchange money, property, shares or anything of value. Because smart contracts run on the blockchain, they are secure and tamper-proof and will run accurately as programmed without any possibility of censorship, downtime or third-party interference.
What does it do?
Ethereum was created as a replacement for Internet third parties – like clouds and servers so developers can build and deploy thousands of decentralised applications.
Through the Ethereum platform, more people can compete to offer different types of services to give us more control and options. An example of how this works in our everyday life is the various apps we use. These apps store all our information like credit card details, shopping history and more in a server controlled by a third party.
These third-party services can control, curate and even censor the types of app you can download. But if the Ethereum platform is successful, you will be in control of all your apps, so no one can suddenly ban, change or remove the app.
Although Ethereum will bring many benefits, experts are also cautious. Since smart contract codes are written by humans, there could be bugs in the codes that will allow criminals to exploit the system. But like everything else in the cryptocurrency world, the jury is still out on this.
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