How Ethereum Is Making The Platform For Blockchain?

What is Ethereum?

Ethereum is an open-source blockchain-based platform used to create and share business, financial services, and entertainment applications.

With the knowledge of blockchain, bitcoin is the first which comes in the mind but since then Ethereum came into existence it explodes the market as well as the expectations from the blockchain.

Unlike Bitcoin which only allows a system for peer-to-peer payments, Ethereum does something else. It not only allowed peer-to-peer payments but it serves as a general-purpose computing platform where anyone can program their own code and make the blockchain without any third-party interference. These are made using smart contracts which are self-executing codes that carry out a set of instructions, which are then verified on the blockchain.

Nowadays internet is centralized under some of the big tech companies, the main aim of Ethereum is to serve as a decentralized public ledger for verifying and recording transactions. Its nodes are supposed to function as a ‘world computer’ where people using specialized programming languages can build their own products which look similar to what we use. Its users pay fees for every transaction (some gas amount from ethers) to use decentralized applications (majorly called as dapps). The fees called ‘gas’ as they vary depending on the amount of computational power required.

How will it affect the market?

Security is the most important need for every company today. So how blockchain will reduce it?

The transactions can be open to everyone in the database and are immutable i.e. cannot be changed, everything will be open to everyone but it will be secured.

It can be understood as if any new fashion company comes in a market and users which have the bond with the old is gold companies which built trust in consumer, why will the consumer try the other company?

Here comes the decentralized system where consumers can pay the online payment but the company will only receive payment when the consumer gets the order. It builds trust in the customers as well as information of every step taken in order to reach its destination. These things can only be making a remarkable impact in the business if people using the particular application are secured with no frauds. Today the world of digitalization faces increasing attacks of hacking and financial fraud of data. KYC- chain is a banking solution that can allow users to share only the necessary information through identity wallets. The service employs Ethereum to store the KYC documents in a decentralized database which can only be retrieved only by the trusted gatekeeper/authenticator.

What if there is a need for the data in the software product which is centralized?

It is the issue face by smart contracts where data is to be used to run the application and give it a real-world view. As if an agriculture-based application is to be made but its crucial catalyst of this application is the data of the agriculture. Using centralized oracles nullifies the advantages of de-centrality and it is a highly hacked system.

The Current State of Oracles

Chainlink is a decentralized oracle service that offers an effective, reliable, and secure connection to external data that can feed on-blockchain smart contracts. LINK is its native token, which requesters use to pay for services on the network, and also acts as an obstacle to nodes against providing faulty data. Unlike other Oracle designs that rely on a centralized party to be trusted as a gateway, Chainlink is built on a network of independent node operators to offer unique integrations.

NFT Business on Ethereum

Non-fungible tokens allow you to include metadata about an asset, detailing attributes, and adding information about ownership. One of the most famous NFT is crypto kitties. It is dapp of ETH where anyone can buy the kitty under their name without any copyright issue. People buy it using ethers (Ethereum cryptocurrency), and they can sell them anytime in the future if they need to under their name.

NFT works with a blockchain to make it a more compatible and decentralized system. It has gained its reputation so much that Jack Dorsey’s first tweet sold as an NFT for an oddly specific $2,915,835.47.

Ethereum to Ethereum 2.0

Open-source development is currently underway for a major upgrade to Ethereum known as Ethereum 2.0 or ETH2. The main purpose of the upgrade is to increase transaction throughput for the network from the current of about 15 transactions per second to up to tens of thousands of transactions per second.

The stated goal is to increase throughput by splitting up the workload into many blockchains running in parallel and then having them all share a common consensus proof-of-stack blockchain, which would cost the attacker far more than they could ever gain from an attack.

Blockchain is the future of the business which will be working in a decentralized manner to make people independent on some of the centralized companies for accessing the internet.

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aNumak & Company

aNumak & Company

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aNumak & Company is a Global Business and Management Consulting firm with expertise in building scalable business models for diverse industry verticals.