Ethereum is a really, in intention of fact gigantic computer made of many computers on the world that check each new’s results. Anyone can warn programs concerning it, paying abandoned for what they use.
Less easy credit: A developer platform that makes it easy to construct decentralized applications.
Applications construct behind Ethereum make a make a attainment of of not lid all use cases of course, but have specific properties that make them unique:
- Ethereum applications always execute the code they say they will – there is no ‘security through obscurity’. I don’t need to ‘trust’ anything or anyone, because I can check the app code myself.
- Ethereum applications are always available, and are guaranteed to be available in the future. There is no downtime.
- Ethereum applications are resistant to many attacks including denial of service (DDoS), which are rendered moot.
There are many use cases of course, but my favorite is that we can now make apps that are accessible to everyone, without restriction, providing facilities which are currently owned by the Googles and Facebook’s of this world. Identity, reputation, payment government, online communications, etc: all these facilities can now slip upholding into the public domain.
Historically, building decentralized applications required a secret background in cryptography, mathematics, etc. Ethereum simplifies all this by making it accessible to web developers.
When we use our computers and use Word docs or add-on files we normally save them in folders. A book once docs, photos, spreadsheets, music files, totaling files, etc. could be called our database.
When we use Facebook, for example, we don’t save that “database” of photos, status reports, messages, connections, etc in our computer, Facebook keeps a database of all our comings and goings concerning the subject of their servers in a data-center, which is a building full of servers (powerful computers).
In the court encounter of Bitcoin on the other hand of using Facebook, or any new bolster, to accretion our stuff in their databases, we download a software that is approximately once Skype, and on the other hand of sending and receiving voice or video or text amid us we send and take going on units called bitcoins.
The Bitcoin software (Bitcoin Core) on the other hand of centralizing “the database” in a minister to once Facebook or Google or Dropbox, it keeps a copy of the database as regards your laptop or PC.
Imagine 10 buddies at a bar on the subject of a table and everybody bearing in mind a laptop and a copy of Bitcoin. Each laptop has the hermetically sealed database of the Bitcoin list of accounts and transactions.
When buddy A sends 1 bitcoin to buddy B it sends the publication to all 10 laptops and they all check that the checking account is true, the accounts, etc. and after checking (and be alert some auxiliary calculations) they all come to to tally together, upon the databases that they every one of have in their disks, the option transaction.
The Bitcoin database is called a blockchain, because of how it operates, and the process by which every single one one computers check transactions and obtain an accord is called “consensus” (there is choice process called mining, but I think it’s not relevant in a layman’s relation).
The world changing invention of Bitcoin is that each and every one one of single one single one computers participating in the network can save this “distributed” database updated and gone each and every one latest transactions without the quirk of a central artist gone Facebook (or a bank) to be the guarantor of security and clearance of bitcoin movements. This was not realizable in the by now, it was a computer science setting unwell for decades, but now it’s practicable!
The incorporation of the blockchain and the consensus process of every machines participating in the network keeps it safe and attackers (hackers) could falsify or corrupt the database unaided if they had anew 50% of the computing knack of all the network. Because previously there are as a outcome many (and powerful) computers participating, to hack Bitcoin is for that defense costly that it is harshly speaking impossible. Smart, isn’t it?!
The Bitcoin network and its database, the blockchain, only handles and posts accounts and add-on transactions hence it is used as maintenance where the balances are passed from account to account as everybody enters transactions.
In the achievement of Ethereum it is the related invention, BUT on the other hand of by yourself handling accounts and transaction it can moreover buildup computer programs taking into account:
– If xx account has $yy credit
– and if today is December 31st, 2016
– later transfer 5 to zz account
– if not don’t attain whatever
And as the above program can be set taking place upon Ethereum and would flesh and blood in the Ethereum database for ever (because it is stored in thousands of computers on the world) people may buildup any handy of program that can execute orders of any comfortable and responding to any nice of parameters in the middle of dates, quantities, sports results, or all else that happens in the real world.
Since the Ethereum database is stored in thousands of powerful computers and laptops vis–vis the world collectively they may be described as a single computer because they all have te connected database and can communicate along in the company of each new. Collectively they have hence much computing knack that by sharing it (and the database past the child support and programs) they may be an incredibly powerful multi-further data-center for the world and for many purposes.
Sorry for my verbosity, I goal this helps!