The Ethereum Blockchain : All You Need To Know - InfoGuiders
Posted on October 29th, 2018
Cryptocurrency Technology

The Ethereum Blockchain : All You Need To Know

Ethereum was released in the year 2015, the Ethereum Blockchain is the brainchild of a visionary man named Vitalik Buterin. He saw the potential uses of Bitcoin’s underlying blockchain technology as the next steps in furthering the expansion of the blockchain community.

The Ethereum Blockchain is currently the second highest cryptocurrency Blockchain in value. It is expected by some to surpass Bitcoin as both a valued investment and as the world’s most popular cryptocurrency in the nearest future.

What is a Blockchain?

A blockchain is a distributed computing architecture where every network node executes and records the same transactions, which are grouped into blocks.

he blockchain’s “distributed database” is kept in consensus across the whole network. Individual user interactions with the ledger (transactions) are secured by strong cryptography. Nodes that maintain and verify the network are incentivized by mathematically enforced economic incentives coded into the protocol.

What is Ethereum? – Ethereum Blockchain

Ethereum is an open blockchain platform that lets anyone build and use decentralized applications that run on blockchain technology. Ethereum is an open-source project built by many people around the world.

Ethereum enables developers to build and deploy decentralized applications such as smart contracts and other complex legal and financial applications.

Ethereum was designed to be adaptable and flexible. It is easy to create new applications on the Ethereum platform, and with the Homestead release, it is now safe for anyone to use those applications.

The Ethereum virtual machine – Ethereum Blockchain

The Ethereum Virtual Machine (EVM) is a revolutionary software 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.

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When users pay small transaction fees to the network, it protects the Ethereum Blockchain from malicious computational tasks, like DDoS attacks or infinite loops. The sender of a transaction must pay for each step of the “program” they activated, including computation and memory storage.

These fees are paid in amounts of Ethereum’s native value-token, ether.These transaction fees are collected by the nodes that validate the network. These “miners” are nodes in the Ethereum network that receive, propagate, verify, and execute transactions.

The miners then group the transactions which include many updates to the “state” of accounts in the Ethereum Blockchain into what are called “blocks”. Miners then compete with one another for their block to be the next one to be added to the Ethereum Blockchain.

Miners are rewarded with ether for each successful block they mine. This provides the economic incentive for people to dedicate hardware and electricity to the Ethereum network. Miners are tasked with solving a complex mathematical problem in order to successfully “mine” a block.

This is known as a “Proof of Work”. Any computational problem that requires orders of magnitude more resources to solve algorithmically than it takes to verify the solution is a good candidate for proof of work.

What is a smart contract?

A smart contract runs on the blockchain and they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference.

A Smart contract is simple a phrase used to describe computer code that can facilitate the exchange of money, content, property, shares, or anything of value.

When running on the blockchain a smart contract becomes like a self-operating computer program (or an artificial intelligence) that automatically executes when specific conditions are met.

DAPPS on the Ethereum Blockchain

Decentralized Applications have no central authority. They challenge the traditional client-server structural system. Ethereum enables developers to create decentralized applications that run over Ethereum Blockchain. Some examples of Dapps successfully running on the Ethereum Blockchain, include;

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1. EthLance – Ethereum Blockchain

This an Ethereum Blockchain based freelancer platform where potential employers can post freelance job offerings and freelancers can apply for jobs. Freelancers get paid in form of Ether tokens and smart contracts are used to make automated payments once the job is done.

2. Akasha – Ethereum Blockchain

Akasha aims to emerge as a next generation social networking platform, running on Ethereum Blockchain . What makes Akasha different from other social networks is its immunity to censorship by default. This enables the users to propagate their ideas without any restrictions. The beta invites for Akasha One network have already been sent.

3. Eth-Tweet – Ethereum Blockchain

The app is itself based on Ethereum Blockchain it is a decentralized micro-blogging platform, Eth-tweet provides twitter like features .Eth-tweet allows users to post 160 character messages.

The advantage of a decentralized platform is that there is no central authority in-charge. As a result, once a message is posted, no one can remove it except the original user who posted it.No that’s what you call real freedom.

4. Swarm City – Ethereum Blockchain

Swarm City is a decentralized commerce platform running on Ethereum Blockchain. Swarm city enables two parties to contact and transact directly, while eliminating middlemen.

The information shared between both parties are stored on their own personal devices as there are no central databases involved.

5. BitNation – Ethereum Blockchain

Based on the Ethereum Blockchain, this platform creates a peer-to-peer network which makes its own governmental decision. They believe that since governments have failed to keep up with advancing technologies, this is their way of taking matters into their hands.

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How do I access the Ethereum Blockchain to build my Dapp?

There are many ways you can develop on the Ethereum Blockchain , one of the easiest ways is to use its native Mist browser. Mist provides a user-friendly interface & digital wallet for users to trade & store Ether as well as write, manage, deploy and use smart contracts.

Another way is to use a MetaMask browser extension, which turns Google Chrome into an Ethereum browser. MetaMask allows anyone to easily run or develop decentralized applications from their browser.

Conclusion – Ethereum Blockchain

Alot of the innovative features that Ethereum has introduced to the blockchain community, have made a very significant impact and have set a standard for further developments in blockchain technology.

Smart contracts have started a new wave of technology consulting services, firms that can implement transactions as smart contracts. They have been contracted as consultancies by numerous organizations that wish to decentralize their network transactions.

And this is only the beginning as Dapps are also beginning to prove very useful in filling problematic gaps in the society and creating solutions to daily problems that we face.

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