𝑾𝒉𝒂𝒕 𝒊𝒔 𝑬𝒕𝒉𝒆𝒓𝒆𝒖𝒎?
Yesterday I shared about Blockchain, how it was formed using a algorithm that is unhackable and unbreakable. And the first to use and prove the importance of a blockchain is bitcoin. Bitcoin is a digital currency, categorized under cryptocurrency, and there are currently more than 6700 different cryptocurrencies in the world.
What makes bitcoin so prominent, and importance is the bitcoin blockchain. What purpose does Bitcoin serve? I will leave that for you to decide.
With the rise of Bitcoin blockchain, together there were a few cryptocurrencies that launches in the world, but recalled what I wrote in my previous articles, good and real cryptocurrencies, serve a purpose, have value added and most importantly, their codes are open-source codes and is publicly available for viewing. So, be careful that you do not fall into any cryptocurrency’s scams. During the rise of Bitcoin blockchain, there was a significant cryptocurrency that gains a lot of eyeballs and buy in, it is called Ethereum.
Ethereum (Ether or ETH) is a decentralized, open source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. It is the second-largest cryptocurrency by market capitalization, after Bitcoin. Ethereum is the most actively used blockchain. The new term here is smart contract. So, what exactly is a smart contract?
𝑾𝒉𝒂𝒕 𝒊𝒔 𝒂 𝒔𝒎𝒂𝒓𝒕 𝒄𝒐𝒏𝒕𝒓𝒂𝒄𝒕?
Imagine today, we are still using the old bank passbook, before we even have an old bank passbook, we must visit the bank with our identification card to open a bank account, the bank teller will write down our details on an accounting opening form, pass to us to acknowledge, pass to their back office to acknowledge, pass to compliance to check due diligence, pass to the manager to approve, and finally pass to the account officer to key in the details to open your bank account. Sounds like a lot of manpower and very tedious, right?
So, Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary's involvement or time loss. Brilliant, isn’t it? And it is built on Ethereum blockchain, which means, whoever wants to use a smart contract, will leverage on Ethereum blockchain to build their own predetermined conditions. Wow! And there are so many companies out there that can leverage on Ethereum blockchain.
Below are some of the world organizations that uses an Ethereum blockchain smart contracts and part of the Ethereum alliance.
NOW, what about the rest of the 6,700 different cryptocurrencies? What problem do they solve? What are their usage for? Do they provide an open source code that is publicly available? Do they have alliance like Ethereum? What do you think? Comment below.
𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘛𝘩𝘪𝘴 𝘮𝘢𝘵𝘦𝘳𝘪𝘢𝘭 𝘴𝘩𝘢𝘭𝘭 𝘯𝘰𝘵 𝘣𝘦 𝘤𝘰𝘯𝘴𝘵𝘳𝘶𝘤𝘵𝘦𝘥 𝘢𝘴 𝘢𝘯 𝘰𝘧𝘧𝘦𝘳, 𝘳𝘦𝘤𝘰𝘮𝘮𝘦𝘯𝘥𝘢𝘵𝘪𝘰𝘯 𝘰𝘳 𝘴𝘰𝘭𝘪𝘤𝘪𝘵𝘢𝘵𝘪𝘰𝘯 𝘵𝘰 𝘤𝘰𝘯𝘤𝘭𝘶𝘥𝘦 𝘢 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯. 𝘛𝘩𝘪𝘴 𝘪𝘴 𝘱𝘶𝘳𝘦𝘭𝘺 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘰𝘧 𝘧𝘳𝘦𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘵𝘩𝘢𝘵 𝘪𝘴 𝘢𝘷𝘢𝘪𝘭𝘢𝘣𝘭𝘦 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘸𝘦𝘣𝘴𝘪𝘵𝘦 𝘢𝘯𝘥 𝘤𝘰𝘯𝘴𝘰𝘭𝘪𝘥𝘢𝘵𝘦 𝘧𝘰𝘳 𝘦𝘥𝘶𝘤𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘶𝘳𝘱𝘰𝘴𝘦𝘴.