What is Ethereum? CoinDesk Guides

What is Ethereum? CoinDesk Guides

Before you can understand ethereum, it helps to very first understand the internet.

Today, our individual gegevens, passwords and financial information are all largely stored on other people’s computers – ter clouds and servers possessed by companies like Amazon, Facebook or Google. Even this CoinDesk article is stored on a server managed by a company that charges to hold this gegevens should it be called upon.

This setup has a number of conveniences, spil thesis companies deploy teams of specialists to help store and secure this gegevens, and eliminate the costs that come with hosting and uptime.

But with this convenience, there is also vulnerability. Spil wij’ve learned, a hacker or a government can build up unwelcome access to your files without your skill, by influencing or attacking a third-party service – meaning they can steal, leak or switch significant information.

Brian Behlendorf, creator of the Apache Web Server, has gone so far spil to label this centralized vormgeving the “original sin” of the Internet. Some like Behlendorf argue the Internet wasgoed always meant to be decentralized, and a splintered movement has sprung up around using fresh instruments, including blockchain technology, to help achieve this objective.

Ethereum is one of the newest technologies to join this movement.

While bitcoin aims to disrupt PayPal and online banking, ethereum has the purpose of using a blockchain to substitute internet third parties — those that store gegevens, transfer mortgages and keep track of elaborate financial instruments.

The ‘World Laptop’

Ter brief, ethereum wants to be a ‘World Rekentuig’ that would decentralize – and some would argue, democratize – the existing client-server prototype.

With ethereum, servers and clouds are substituted by thousands of so-called “knots” run by volunteers from across the globe (thus forming a “world pc”).

The vision is that ethereum would enable this same functionality to people anywhere around the world, enabling them to contest to suggest services on top of this infrastructure.

Scrolling through a typical app store, for example, you’ll see a multiplicity of colorful squares indicating everything from banking to fitness to messaging apps. Thesis apps rely on the company (or another third-party service) to store your credit card information, purchasing history and other individual gegevens – somewhere, generally te servers managed by third-parties.

Your choice of apps is of course also governed by third parties, spil Apple and Google maintain and curate (or ter some cases, censor) the specific apps you’re able to download.

Take the example of an online document service like Evernote or Google Docs.

Ethereum, if all goes according to project, would comeback control of the gegevens te thesis types of services to its holder and the creative rights to its author.

The idea is that one entity will no longer have control overheen your notes and that no one could abruptly geobsedeerd the app itself, temporarily taking all of your notebooks offline. Only the user can make switches, not any other entity.

Ter theory, it combines the control that people had overheen their information ter the past with the easy-to-access information that wij’re used to te the digital age. Each time you save edits, or add or delete notes, every knot on the network makes the switch.

It’s worth noting that the idea has bot met with skepticism.

Albeit the apps emerge to be possible, it’s unclear which blockchain applications will actually prove useful, secure, or scalable, and if they will everzwijn be spil convenient to use spil the apps wij use today.

Authored by Alyssa Hertig, Pics by Maria Kuznetsov

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