Meaning and Key Applications of Ethereum Blockchain

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In blockchain technology, Ethereum only comes second to Bitcoin in cryptocurrency popularity, but unlike Bitcoin, which is basically a cryptocurrency, Ethereum is a platform with a cryptocurrency called Ether (ETH). This has given Ethereum blockchain a wider variety of applications and even acceptance by big tech corporations. In this article, we’ll explore the Ethereum platform, its features, and its applications.

What Is Ethereum?

Created by Vitalik Buterin in 2013, Ethereum is an open access networking and computing blockchain platform where developers can build, view, and deploy decentralized currencies and applications. Described as a community, Ethereum is the blockchain technology behind Ether (abbreviated as ETH) and many other applications. Many people use Ethereum and ETH interchangeably simply out of mix-up, but they’re different. If you’ve ever searched “how to buy Ethereum” on the internet, you were actually looking to buy Ether (ETH).

Ethereum Features and Applications

Typically, Ethereum builds on the popular Bitcoin cryptocurrency’s innovation but with some major differences. Unlike bitcoin, there’s more to Ethereum than just payments. Ethereum is a platform with a cryptocurrency, participants, and many applications. Here are its features:

• Ether: The cryptocurrency is often confused with Ethereum
• Smart contracts: These are contracts that the Ethereum platform allows their development and deployment to facilitate the exchange of assets between parties
• Ethereum Virtual Machine: This is the underlying Ethereum technology, or the software and architecture, that understands the smart contracts and allows users to interact with them
• Decentralized applications (Dapps): These are consolidated or decentralized applications that people can create on the Ethereum platform
• Decentralized autonomous organizations (DAOs): These are autonomous organizations that Ethereum allows users to create for autonomous decision-making

These features enable Ethereum to be applicable in a wide array of real-world areas.

Real-World Applications of Ethereum

Through its combination of innovative and programmable features like Ether, DaaPS, smart contracts, or DAOs, Ethereum is applicable in various innovative areas such as web browsing, gaming, finance, identity management, and Bitcoin. Here are some examples of Ethereum applications

• Agreements: Ethereum’s smart contracts are changing how digital agreements are executed without any forms of alteration. Industries with major disputes and conflicts such as business and legal fields can use Ethereum’s smart contracts. This allows for digitally recording transactions and agreements and prevents conflicts.
• Banking System: Financial and banking systems across the globe are adopting Ethereum because its decentralized system is challenging for fraudsters and hackers to earn unauthorized access. Banks are also using Ethereum for secure payments and remittances through the Ethereum-based network
• Voting Systems: Voting systems around the world are adopting Ethereum, as we’ve seen with DAO. It makes the polls’ results publicly available, which provides transparent and fair democratic processes and eliminates voting malpractices.
• No Censorship: Since no company or Government controls Ethereum (it’s decentralized), it is almost impossible for a user to be stopped from making or receiving payment on Ethereum or using any Ethereum services.
• The Internet: Ethereum provides a more private, and no surveillance internet. Banks and agreements are shifting to the platform because a user doesn’t need to provide all personal details to utilize Ether payment or an Ethereum app.
• Peer-to-Peer Network: Users on the Ethereum platform can move money, make agreements, make remittances directly with a second party without intermediary companies.

There are other applications of Ethereum that users and participants can enjoy.

Endnote

Ethereum is a platform for more than just digital payments. It’s a community and a marketplace of decentralized digital assets, financial services, apps, and games that can’t censor you or steal your data.