What is Ethereum !!
Ethereum is a open-source, distributed, public, block chain based network and provide platform that enables developers to build and deploy decentralized applications (DApps).The working of DApps is based on functionality of scripting which is called here "Smart Contract". The virtual machine which is responsible for distributed execution of these scripts or say smart contracts is called Ethereum Virtual Machine (EVM).It executes the scripts using an international network of public nodes.
This international network of public nodes are compensated by crypto-currency called "Ether" for computation performed by them.
The basics of working of Ethereum network is concept of smart contracts. Actually, smart contracts are business rules encoded in programs that execute themselves automatically under certain conditions. For example, funds are only transferred if the majority of owners have digitally signed off on a transaction.
Such contracts can also be combined to form wholly digital firms that are not based anywhere in the real world, but on a “blockchain”, the sort of globally distributed ledger that underpins crypto-currencies such as bitcoin.
Difference between Bitcoin and Ethereum :
- The bitcoin blockchain is used to track ownership of digital currency (bitcoins), the Ethereum blockchain focuses on running the programming code of any decentralized application.
- In the Ethereum blockchain, instead of mining for bitcoin, miners work to earn "Ether", a type of crypto token that fuels the network. Beyond a trade-able crypto-currency, Ether is also used by application developers to pay for transaction fees and services on the Ethereum network.
- If we make analogy then Ethereum can be regarded as digital oil for Web 3.0 while bitcoin can be regarded as Gold.
- Ethereum is a lot younger having only been started in 2014, whereas bitcoin began in 2009. Ether's market cap is at $18.6 billion versus bitcoin's $39.2 billion, according to coinmarketcap.com.
Smart Contract :
Smart contract is nothing more than a certain computer code built within the network and it is executed by computers or the nodes to update a open-ledger. Smart contract work on IF-THIS-THEN-THAT logic. When run on the blockchain, a smart contract becomes like a self-operating computer program that automatically executes when specific conditions are met.
Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.
Ethereum Virtual Machine (EVM) :
Ethereum’s core innovation is the Ethereum Virtual Machine (EVM). It is a Turing complete software i.e. we can say it is a self operating virtual machine that runs on the Ethereum network. It enables anyone to run any program, regardless of the programming language given enough time and memory.
The Ethereum Virtual Machine makes the process of creating blockchain applications much easier and efficient than ever before. Instead of having to build an entirely original blockchain for each new application, Ethereum enables the development of potentially thousands of different applications all on one platform.
Ether is the utmost necessary element for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. We also can conclude that, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources. So it works like a crypto-fuel for working of the Ethereum.
At last, right now Ethereum is being used as a core by technology giants and corporations to develop customized blockchain models. such as Microsoft Corporation, JP Morgan Chase Co., Intel Corporation and Bank of New York Mellon Corp are associated with it.
The formation of the Ethereum Enterprise Alliance in February 2017 and its subsequent expansion to 116 members recently has generated interest and excitement in the community.
Ether :
Ether is the utmost necessary element for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. We also can conclude that, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources. So it works like a crypto-fuel for working of the Ethereum.
At last, right now Ethereum is being used as a core by technology giants and corporations to develop customized blockchain models. such as Microsoft Corporation, JP Morgan Chase Co., Intel Corporation and Bank of New York Mellon Corp are associated with it.
The formation of the Ethereum Enterprise Alliance in February 2017 and its subsequent expansion to 116 members recently has generated interest and excitement in the community.
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