What is Ethereum with a simple and in-depth explanation

 During the first four years after the advent of the decentralized blockchain technology system, Bitcoin was the only pioneer in the blockchain industry. Other cryptocurrencies, such as Litecoin, were forks. The early developers who discovered the splendor of the blockchain system and the Bitcoin currency, took the basis of the code on which the blockchain was built, and came out with what is now called Ethereum, a system that added a lot to the crypto industry and the cryptocurrency industry, and made what was in the past almost impossible, very possible and is done It is widely adopted by government and private agencies.

The characteristics of the BTC program symbol carriers limited the use of digital assets by the financial system and did not allow to reveal the full potential of the innovative technology. The result was the emergence of the currency and the Ethereum system, a cryptocurrency that became the main competitor to Bitcoin digital gold.

Ethereum is a global tool for launching decentralized applications based on smart contracts, and also a strong cryptocurrency, and it is the second in the list of the most popular cryptocurrencies after Bitcoin.

The main value of the Ethereum network is not cryptocurrencies, but the capabilities of the virtual platform. All kinds of Blockchain ventures are launched on an Ethereum basis, from digital ventures in supply chain management, sports, operating systems, travel, online commerce to charities.

Introduction to pre-acquaintance with what is Ethereum?

Before you get deeper into understanding what Ethereum is, you need to understand what the Internet is. Today, all personal data, passwords, financial information... are stored. To a large extent on other people's computers, cloud computers or in servers owned by companies such as Amazon, Facebook and Google... This article  is stored on a server or server controlled by a company and the latter takes a fee for that monthly, annually...

These settings provide many features, which allow business owners the convenience of making their business secure. These companies have teams of specialists to help store and secure data, and eliminate the costs that come with long-term hosting.

But despite the advantages provided by companies, they remain vulnerable, in front of the threat of internal and external piracy and from intrusion of governments that can gain unwanted access to your files without your knowledge, by affecting or attacking a third-party service (i.e., any of the companies that provide any information storage service, Messages, files, emails ……). This means that it can steal, leak, or change important information even if there are many companies' slogans "Your privacy is safe."

Brian Behlendorf, creator of the Apache Web Server - he called the central information system, or the Internet in general, a "great sin". Also the same person with many people believe that the Internet has always been and should be decentralized.

A split movement has arisen over the use of new tools, including blockchain technology, to help achieve the goal of internet decentralization.

What is Ethereum without any complication?

Ethereum is one of the latest technologies that provides technological solutions that eliminate middlemen in many sectors.

While Bitcoin aims to make PayPal and online banking services in the past, Ethereum has the goal of using blockchain to replace third parties locally and electronically such as those that store data, transfer mortgages and track complex financial instruments, accounting, bank records... etc. Down to whatever sector it was, it could be decentralized.

Who Founded Ethereum?

In 2013, a young Canadian programmer, founder of Bitcoin Magazine named Vitalik Buterin, along with his colleague Gavid Wood, introduced the concept of the Ethereum Blockchain platform. The cryptocurrency in this network played a role not only as a means of payment, but also allowed the exchange of resources for a variety of web services operating in a peer-to-peer network. In the context of the ICO held the following year, the company managed to collect 31,000 Bitcoins, which was worth $ 18 million at the time. Vitalik Buterin succeeded in bringing the new project to the attention of banks and reputable financial institutions. The Ethereum network was launched in test mode in the summer of 2015. But the full suite of options became available only 9 months later, when the Homestead protocol was created and implemented.

In June of the same year, a vulnerability was discovered in the DAO code, a system that independently manages venture capital. Due to a bug in the program, hackers stole about a third of the cryptocurrency, transferring it to a branch of the Child DAO chain, which was completely under their control. However, these funds were frozen for a month due to the idiosyncrasies of the DAO project.

Vitalik Buterin, along with part of the Ethereum community, decided to return the money to the investors. As a result, on June 20, 2016, a network hard fork (a fork in the Blockchain) event that nullified the changes made by hackers. But another part of the community decided to stay in the DAO project, so the Ethereum Classic crypto network was formed.

Ethereum, the unified global computer

In short, Ethereum wants to be the "global computer", the democratic decentralized computer... which we can consider as the new model of servers.

With Ethereum, servers and cloud are being replaced by thousands by so-called "nodes," or peers, run by volunteers from all over the world (thus forming a "global democratic decentralized computer").

The vision is that Ethereum would make the function of maintenance, authentication, security and data preservation in the hands of people (miners - in blockchain terms) with their computers from and anywhere from all over the world, enabling them to compete to provide services on top of the Ethereum architecture. Technology.

Why do you need Ethereum

Ethereum blockchain enables everyone to use all the benefits of distributed ledger technology when performing specific tasks. After the emergence of the Ethereum system, it was no longer necessary to create a personal crypto network. For a relatively small fee, you can use a ready-made solution.

Tens of thousands of computer applications written in different programming languages ​​were now able to run and interact with each other on the same site, greatly expanding the scope of Blockchain technology. According to Vitalik Buterin, Ethereum is a new internet, with all its unlimited potential and prospects. Smart contracts , which were proposed at the end of the last millennium by Professor Nick Szabo, are the "secret ingredient" of Ethereum. In essence, they are PC applications that control the payment of the transaction. The program performs condition operations in the traditional contract, but programmatically.

Example: If a person puts 10 dollars in a coffee machine, they will make a cup of coffee for you when the condition of paying for the cup is 10 dollars is met, but now it is safer, and it is used in very sensitive decisions.

Smart contracts effectively support transactions and contract compliance in a fully virtualized environment.

Thus, every qualified programmer can create their own application based on the Ethereum ecosystem, and work according to a strictly defined algorithm. The system guarantees protection from failures and intruders, the absence of oversight, and the non-interference of external regulators. If one of the nodes serving this smart contract fails, the application will switch to another node and continue to work stably. The information obtained during the implementation of the smart contract will remain unchanged thanks to the distributed storage system with thousands of nodes.

Ethereum network functionality allows:

• Launch of advanced smart contracts to manage logistics chains.
• Create applications of any kind (games, utilities, etc.).
• Digitize physical assets (oil, gold, precious stones, and manufactured goods).
• Manage client identification and document authentication services.
• Regulating decentralized trading platforms.

In theory, on the Ethereum blockchain, you can launch electronic voting in elections, without worrying about fraud, or altering the data because that would be impossible thanks to the blockchain.

Your choice of apps is also governed by a third party, as Apple and Google censor your choice and make you choose specific apps that you can download.

Take the example of an online document archiving and editing service like Evernote or Google Docs. If you were an author or an intellectual property owner, even before it was first published, Google could…. Know what you intend to publish in the future.

In addition, several ICO and DeFi financial services platforms are being held on the basis of the Ethereum platform, for which one standard tokens released called ERC 20 has been developed. The ERC 20 standard ensures that all projects comply with established security standards and ensures their stability within the network. .

It was the launch of the Ethereum ecosystem that sparked a real boom in the ICO market. A newcomer familiar with the basics of the cryptocurrency industry was surprised to learn that a large number of other cryptocurrencies operate on the Ethereum Blockchain, in addition to the ETH token. Each user can issue their own icons. Correct, according to predetermined criteria. Compliance with the rules of the ERC-20 standard is essential to ensure the normal interaction of personal virtual assets with the rest of the system.

The by-product of the network is Ether, the consumer currency to run smart contracts. The developers believe that ETH is a digital fuel that supports Ethereum virtual machine functionality. The EVM is designed to prevent a denial of service attack. The EVM controls blocking unauthorized access to the internal state of software deployed on the Ethereum platform, preventing potential interference within the network.

When a new program is activated or a transaction is executed, the network processes the collected data in a "binary code", which the virtual machine decodes and executes. With an EVM, applications written in different computer languages ​​can communicate effectively.

Starting an Ethereum blockchain project is very simple and relatively inexpensive. New startup organizers were quick to take advantage of this. Now the system runs thousands of apps with original icons, and fundraising campaigns are organized regularly. Young crypto venture teams sell their cryptocurrencies to investors the same way regular companies sell their shares.

What could blockchain projects change

You are browsing and navigating between products on an e-commerce app or website, for example: from banking services to fitness to messaging apps. These applications depend on the company (or another third-party service) to store your credit card information, your activities on the application, the purchases you made and other personal data (you may not really know where it is stored), and you may calculate that it is deleted after you In the process, it will in fact remain forever on servers controlled by third parties.

On Ethereum, according to the distributed and encrypted data, you are the one who alone controls what data you own (because it is encrypted and the encryption solution is in your hands) because it is you who owns its private key, also all your creations and all your books have one public key in your name or in the name of your organization and cannot be changed This is because it is registered in the blockchain and in encrypted form, (anyone without your private key cannot open what you own on the network) of the data distributed to participants in Ethereum, the unified global computer. 

The idea is that no one can control what you own, not stop or change the content of what you own, except you, as if you have an offline computer that is not connected to the Internet and you store all your data in it. Only the user can make changes, and not any other entity. However, Ethereum, the unified global computer, is for you at any time and can access your data from anywhere in the world and on any device you want.

Ethereum, the unified global computer. In theory, it combines the control people had over their information in the past with the ease of accessing information that is used in the digital age. Every time you save modifications, add or delete notes, every node on the Ethereum network, the unified global computer, makes the change.