- Ethereum allows developers to create decentralised apps through the use of smart contracts.
- These Dapps function without the control of any centralised entity.
Most of you might know Ethereum as a cryptocurrency, which is the second biggest cryptocurrency after Bitcoin according to market cap. And many more things related to the Ethereum cryptocurrency. Ethereum as a cryptocurrency is nothing but a way of incentivizing all the people working on the Ethereum platform? So this question must be striking in your mind. What is Ethereum? In this article, we will address this question only about what actually is an ethereum.
What is Ethereum
Ethereum is an open-source, decentralised platform that provides a platform for all the other decentralised apps to function on the decentralised market. Why do we need Ethereum? Why do we need a platform for all the decentralised apps to function? This is because it will be very hard for any decentralised company to function without the presence of a platform. If this happens, then every decentralised platform will need its own different network of computers, Its own community, and even its own coding language.
Imagine how hard it will get if this happens, and one more important thing, there will be no interconnectivity. This type of decentralised app will be of no use. Vitalik Buterin knew this, and that’s why he made a platform that will become a base of all the other platforms working on the decentralised market.
Ethereum has its own language, and its own native cryptocurrency called Ethereum.
By using the Ethereum blockchain, developers who have basic knowledge about blockchain can easily learn Solidity, which is a coding language used to build decentralised apps on the Ethereum platform. By using Solidity, developers can write smart contracts. Using these smart contracts, one can easily build a fully functional, decentralised application. It means that he doesn’t need to build his own blockchain; no need to make his own community. They can simply use the Ethereum platform.
The uses of the Ethereum Blockchain
Ethereum is just a platform. With the use of the Ethereum app, any use case can be built on this platform. So Ethereum can be used in more than just a limited number of sectors. It can be used for a variety of things. Some of the most common use cases are mentioned below.
Banking
Aave is the most popular example of the use of Ethereum in banking. Because it functions the same way as normal banks do. It allows users to deposit cryptocurrencies as we deposit currency in our financial system, and all the banks provide interest on deposits in the same way Aave provides interest to the users. Banks also provide loans, and Aave also lends cryptocurrencies in exchange for some interest.
Hard drive rental services
If you have vacant space on your hard drive, you can easily rent it through decentralised rental services. These services are built on the Ethereum blockchain. They allow users to rent the vacant space on their hard drive, and that too decentrally. They work on the basis of smart contracts.
Other than this, it can also be used in all the types of services that the current centralised system offers, and users can enjoy these services without risking their security and privacy without depending on a centralised entity.
Conclusion
Ethereum serves as a groundbreaking platform for developing decentralised applications (Dapps) through smart contracts. By providing interconnectivity and a common base for various Dapps, Ethereum revolutionises the decentralised market. Its uses span across banking, hard drive rental services, and countless other sectors, offering users secure and private alternatives to centralised systems.
