Blockchain technologies are rapidly becoming an important trend in the modern technology ecosystem. Within the blockchain space, Ethereum has become one of the most important platforms in just a few years. However, with popularity comes risk. There are many misconceptions about Ethereum and many people/media still associates it with the Bitcoin blockchain. To address some of those misconceptions, I’ve written four articles that summarized 20 of the most important points about Ethereum. Each article covers 5 key points about the platform.
1-Ethereum is a General Purpose Blockchain
Despite its generic architecture, the Bitcoin blockchain remains as an infrastructure optimized for payments. Ethereum expands the concepts of the blockchain with a modern architecture that enables the implementation of general purpose applications.
2-Ethereum is Based on Three Main Concepts: Smart-Contracts, Decentralized Applications and Decentralized Autonomous Organizations
There many important concepts in the Ethereum platform but, fundamentally, it focuses on enabling the implementation of descentralized applications [DApps] that exchange digital assets between descentralized autonomous organizations [DAO] using Smart-Contracts. Any Ethereum application can be seen as a combination of those three elements: DApps, DAO and Smart-Contracts.
3-Ethereum Applications are Based on Decentralized Code
Decentralized code is code stored in the blockchain. Ethereum scripts are stored and executed in the blockchain and, consequently, replicated across many nodes which makes it extremely hard to tamper them.
4-Ethereum Applications are a Combination of Decentralized Backend with a Centralized Front-end
Its pretty hard to write general purpose applications 100% on the blockchain. Typically, an Ethereum DApp combines descentralized code to enable backend, blockchain-based capabilities combined with user interface delivered using the traditional centralized mechanism of web applications.
5-Smart Contracts are Decentralized Code that Moves Digital Assets
Smart Contracts are, arguably, Ethereum’s biggest contribution to the blockchain ecosystem. Conceptually, Smart Contracts are Ethereum Scripts [descentralized code ] that executes based on a condition and exchanges digital assets.
More to come tomorrow….