Ethereum seeks to be the ‘world computer’ for decentralized applications. Therefore, it builds on Blockchain technology to establish a distributed public network that is modeled to work like a client-server type of internet. Through the use of its Blockchain technology, Ethereum plans to replace cloud servers with ‘nodes’ that are designed to be managed and run by volunteers located in different parts of the globe.
Ethereum is thus building infrastructure where individual entities are capable of bypassing traditional servers by building a decentralized application that runs on the Ethereum network. This in return gives developers a level of competitive advantage on a platform that lacks third-party involvement.
What is the principle behind Ethereum?
Ethereum is fundamentally driven by the need to decentralize the internet. Currently, most of our personal data and information are stored on servers run by top companies such as Amazon, Google or Facebook. These companies control most of the traffic online and as a result, influence the distribution of information on the internet. Furthermore, companies that seek to develop applications are at the mercy of the servers controlled and managed by third parties. This makes them vulnerable to attacks as well as other data management issues.
Ethereum provides a solution that does not only decentralized control of personal data but also provides a cryptographic level of security for dApp developers. While Bitcoin is designed to build a Blockchain platform that disrupts digital payment platforms such as PayPal, Ethereum seeks to build a new internet that completely replaces the need for third-party data storage entities. By this design, Ethereum presents itself more as software than a regular cryptocurrency.
Ethereum’s Trading History
The cryptocurrency market is known for its high levels of volatility and Ethereum is certainly no exception. Since its ICO launch in July of 2014 Ethereum has seen a growth of over 200,000 percent starting at an ICO price of $0.3 to its current price of about $800.
Impressive as it may be, there have been some volatile fluctuations in price especially with the recent dip that has seen the overall cryptocurrency market shade its capitalization form over $700 million to a value of $300 million in just a month. For Ethereum, this translated to a price drop from of $1300 to its current price around the $800 mark.
Ethereum’s Latest Integration
Over the years Ethereum has demonstrated a high potential for mainstream uptake. However, according to the platform’s co-founder, Vitalik Buterin, scalability and safety of smart contracts (a consensus and privacy protocol) are the main issues affecting the Ethereum Blockchain network.
To this regard, the Co-founder and author of Bitcoin’s Lightning network are working on a hybrid proof of stake and proof of work consensus protocol called Casper that will see the introduction of Plasma (a second layer on the Ethereum network that will enable scalability). Furthermore, developers of the Ethereum network have also moved to make Ethereum more anonymous and private by incorporating zk-SNARKs technology from ZCash. For holders of Ethereum, these and many other developments that are to come will hopefully give value to the long-term price trend of Ether.
