To understand Ethereum in a better way let's do a quick recap about Blockchain and Bitcoin and see how Ethereum blockchain development services are using this concept to decentralizing business and services to the next level. Since blockchain is the basis on which Ethereum was born. Blockchain is simply records of data stored on the network of computers which have three pillars that make it unique: Decentralization, Transparency, and Immutability. Blockchain's recording and storage protocol make it such that once new data is verified it is unmodifiable, it's distributed across a vast network of computers around the world so it's hard to destroy and no one person, authority, government, or entity controls the network which makes it completely transparent environment.
Now, you are familiar with some of the blockchain's important features. Now let's see how Bitcoin uses blockchain to create a decentralized form of currency that individuals could trade directly without the need for an intermediary. Each Bitcoin transaction gets verified by the member of the entire Bitcoin network. Thus, it leaves no single point of failure and makes the system virtually impossible to manipulate or control. Well money can be decentralized, what the bitcoin does, but the other functions of society that are centralized today would be better served on a decentralized system, isn't it? Such as Voting, Social networks like Facebook and WhatsApp, real estate transfer records, all based on centralized servers that control all of the data we upload to them.
Well, the answer is yes, thanks to Ethereum.
Ethereum
Ethereum was first proposed in late 2013 and then brought to life in 2014 by a Russian Canadian programmer Vitalik Buterin, and was the co-founder of Bitcoin Magazine at that time.
Like bitcoin ethereum is a distributed public blockchain network although there are some significant technical differences and the most important distinction is that bitcoin offers a peer-to-peer electronic cash system that enables online payments where ethereum focuses on running code for any decentralized application that's deployed on its network.
The plainest and simple explanation of ethereum can is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications, usually called Dapps.
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dApps
Dapps is the abbreviated term for decentralized applications, just we can build apps for the play store and App Store, developers can also build apps on the top of the Ethereum blockchain. Dapps are applications that facilitate a decentralized infrastructure powered by blockchain technology. It renders them unique to business and probably far superior from traditional ones. Dapps front-end code or user interface can be written in any language that can make calls to its back-end which is running on a decentralized peer-to-peer network like ethereum and all records of the applications are stored on the blockchain and no one person owns the application. If you want to create Dapp that no single person controls, not even you. All you have to learn Ethereum's programming language called Solidity to write Smart Contracts.
Smart Contracts
Smart Contact is a phrase used to describe a code running on the top of a blockchain that can facilitate the exchange of money, content, property, shares, or anything of value. They automatically enforce various aspects of a business contract, including management, payments, and performance. Once the smart contract is deployed on the network, it can not be corrected or edited even by its original author. You need to be very perfect and accurate while writing them as they are immutable. Users can interact with these self-operating computer programs and they will run exactly as coded without any possibility of censorship, downtime, and fraud, or interference by sending ether.
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Ether
Ether was designed to fuel the Ethereum network. Anyone who wants to build a software application on the Ethereum network has to pay for the computational power and space required using Ether. The payment is made in the form of ether to the miners for evaluating the transaction, very similar to the way Bitcoin miners get paid. The amount of Ether required for network fees is determined by a build-in pricing system known as GAS.
GAS
We can simply consider Gas as the number of fees for bandwidth and space requirements as well as the computational power required for each transaction or simply the cost of performing the transaction on the ethereum network. Miners or nodes are allowed to set a minimum Gas amount to accept to perform the computational work required to complete the transaction. Gas prices are denoted as GWEI which is simply referred to as the fraction of Ether to 9th power. 1 GWEI = 0.000000001 ether.
You now have a basic understanding of Ethereum. If you are planning to develop your project on the Ethereum Blockchain, connect with our Ethereum developers to get started.
November 21, 2024 at 11:05 am
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