Day after day, the crypto market gains more space and attention from different audiences, making it difficult to ignore.
Bitcoin remains quietly at the forefront of this market, with the most expressive capitalization, greater decentralization and network size. However, the project that has been in second place for a long time has been standing out and supporting the creation of the vast majority of other tokens in this ecosystem.
Inspired by the concepts proposed by Satoshi Nakamoto, such as consensus and decentralization, with the proposal to allow new features to blockchain technology and expand the possibilities initiated by the Bitcoin network, increasing the potential for disruption to various industries, especially finance.
In this report we will explain about the importance of this platform and why you should try to understand it better.
Ethereum is a global open source platform based on blockchain and distributed among thousands of computers around the world, which allows any developer to create smart contracts and build decentralized applications (dapps) of different levels of complexity, including, but not limited to cryptocurrencies.
Because it works in a distributed manner, there is no possibility of censorship, downtime, control and interference by third parties. In addition, Ethereum was designed to be adaptable and flexible and, for these and other reasons, is considered the worldwide programmable blockchain.
The purpose is totally different from Bitcoin.
While Bitcoin is used for sending and storing value, Ethereum's blockchain focuses on creating and executing any type of decentralized application through its smart-contracts, thus functioning as a kind of decentralized world wide web.
Most of the other projects in the crypto ecosystem were built on the Ethereum platform and all of this makes it a key part in building Internet 3.0.
Let's understand a little about the main points that make it such an important network for the crypto ecosystem.
The Ethereum network allows applications for Web 3.0 that, unlike the current reality, allows anyone to participate without having their personal data monetized by third parties.
Anyone on the network is allowed to use the service, in other words, permission is not required.
No one can block you or deny you access to the service.
Payments are integrated using the native token, ether (ETH).
In a world with restrictions and ties caused by centralization, Ethereum arrives to maximize the possibilities of generating value, increasing efficiency, security and giving the opportunity for more people to have economic participation, since it allows any developer to create decentralized applications without any special permission.
The Ethereum network has the potential to cause huge changes in various industries, as it can optimize virtually all types of business, and can be used to create decentralized applications in the area of healthcare, real estate, finance and more.
Ethereum is the Internet of money, a global distributed computer, where everything is transparent and open to everyone. The following are some practical applications:
FINANCIAL SYSTEM FOR ALL
The financial market can be considered the mechanism that brings surplus agents to deficit agents, that is,
borrowing investors.
The problem with the traditional system is that it excludes many people and does not provide fair ways of accessing services and credit. Not everyone has access to financial services. With the solutions being built on the Ethereum network, all a person needs to access similar services, such as loans and savings, is an internet connection.
Decentralized Finance (DeFi) is just beginning and has been showing exponential growth.
CENSOR RESISTANT
No government or company has control over the Ethereum network. This decentralization makes it almost impossible for anyone to be prevented from receiving payments or using the services created there. We are just addresses!
COMMERCIAL GUARANTEES
Ethereum creates a more secure and transparent trading environment, where service providers and customers have an integrated and secure guarantee that funds will only change hands if what was initially agreed is fulfilled.
You do not need the influence of a large company to do business, because through smart-contracts, everything is automated and immutable.
A MORE PRIVATE INTERNET
In the centralized format that the world is used to, data is exposed, stolen and monetized by third parties.
You do not need to provide all of your personal data to use an application from the Ethereum network, as it is built on a value-based economy, not surveillance.
A POINT-TO-POINT NETWORK
Ethereum allows you to move money or make deals directly with someone else.
You do not need to go through intermediary companies. And here comes the NFTs, which allow artists to sell their works without having to go through the bureaucratic and costly intermediation of a traditional gallery, for example.
In addition to DeFi and NFTs, which we highlight, there are still fascinating projects that have been built through EVM (Ethereum Virtual Machine), in the area of electricity, health records, supply chain, internet of things, voting systems, decentralized cuts and much more.
The Ethereum network represents a true paradise for innovation. A fundamental tool for many developers and entrepreneurs to create decentralized businesses in formats that would not have been possible before.
ETHEREUM VIRTUAL MACHINE (EVM)
It is the operating system that runs everything and that plays a crucial role in the consensus mechanism.
Ethereum's blockchain database is maintained and updated by many nodes connected to the network. Each node in the network runs the EVM and the same instructions.
In terms of computer science, EVM is a Turing complete, that is, a system capable of carrying out any logical step of a computational function and expressing any task executable by computers.
ETHER (ETH)
It is the native token of the Ethereum network and used as an economic incentive for the construction and use of dapps.
When a transaction occurs on the network, fees are paid with it, it is the network's GAS.
SMART-CONTRACTS
They are contracts similar to traditional models, the difference is that they are written through code and are self-executable, that is, they are executed when the requirements specified initially are met and after the digital signature, which is done through private keys.
From there the transaction is publicly stored on the blockchain making it irreversible.
Imagine the importance of this as follows: Ethereum smart contracts can guarantee ownership of basically anything. From houses to works of art, luxury cars, renewable electricity and a multitude of things.
With the use of smart contracts, investors and others around the world do not have to go through the bureaucracy of the traditional system to have a house or a work of art in another country, for example. This opens up a huge range of opportunities.
In short, smart contracts are the digital and decentralized version of typical contracts, which in the traditional model are physical and executed by third parties, such as notaries.
BITINFOCHARTS data revealed the great increase in the volume of transactions that the Ethereum network has been presenting from the beginning.
There are more than 1 million daily transactions.
The number of addresses with more than 0.1 ETH has also been increasing and reached an ATH of 3,716,113.
If you have any doubts about the importance of Ethereum, these data were to demonstrate that it is a network that will still grow a lot, we are just at the beginning.
As you can see, this protocol has a very big meaning for the entire crypto ecosystem and will play an increasing role in the process of increasing application adoption.
decentralized.
Through smart contracts and dApps, the global distributed computer will allow the construction of solutions that we have not yet imagined.
With all the success already achieved by Ethereum in such a short time, the network ended up congesting, which raised the expectations for the successful implementation of Ethereum 2.0.
This allows the platform to show its full potential and bring evolution to everything that concerns blockchain and its applications to the physical world.
Making it such a valuable network and with an immense potential to bring enormous changes to the world.
We will probably be surprised in the future about the amount of possibilities that can be built on the Ethereum network.
It's like back at the beginning of the internet, when people didn't really know what it would become these days: indispensable.