This post can also be found on my blog and website.
Ethereum is a blockchain that operates as a platform for Decentralized Applications (DApps) and Smart Contracts. It's native currency is called Ether. Sending ether on the blockchain is fast and cheap, making it an appealing option for transactions. Smart contracts, however, are the key feature of the Ethereum blockchain. Here's why.
Ether on the blockchain is programmable, meaning that a user can write code to give it instructions on what to do. If you want to send ether to a potential business partner, but only once they digitally sign an agreement, you can write what is called a Smart Contract that will do this automatically. Due to the decentralized nature of the blockchain, once set in place, a smart contract can't be tampered with. Both parties can trust that the contract will run as intended.
Using smart contracts, you can even make entirely new money on the Ethereum blockchain. These are referred to as tokens. I have made a few myself but they typically hold no real value unless backed by a project or company. Remember, it's all about supply and demand. A token is only as good as its demand for it.
The Ethereum blockchain can act as a platform for developers to build on. Decentralized apps (DApps) can be created using a familiar front end, just like any other app, but with a back end that utilizes Ethereum's global peer to peer network. This enables a DApp to take advantage of smart contracts and everything else the Ethereum blockchain has to offer.
Ethereum has attracted investors, startups, and large businesses from all corners of the world. There is even an organization called the Ethereum Enterprise Alliance that formed this year, which is a collection of businesses involved in the Ethereum space. Ethereum has a bright future, and it's worth getting involved with, whether you're an individual or a business.
You can learn more about Ethereum, blockchains, and smart contracts in my upcoming book The Blockchain Era. Please follow and share, so that more people can learn about this amazing technology.
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