This is the most accurate summary, but when explaining Ethereum to friends, family, or strangers, this can help them compare it to Bitcoin since many people have already heard of Bitcoin and this concept regarding the philosophy of Ethereum, you can familiarize them a bit more.
COMPARISON OF ETHEREUM WITH BITCOIN
With Ethereum, a part of the programmable code of smart contracts from a decentralized application such as the currency itself could automatically transfer the ownership of the home to the buyer and the funds to the seller after a deal is made with no need for third parties to run on your behalf.
The potential of this is incredible! Think of the many apps that act as a third party to connect you with others based on some established logic (e.g., Uber, Airbnb, eBay). You can buy bitcoin in dubai, if you are having an internet connection with a quality investment amount.
Many of the centralized systems that we use today could be created in a decentralized way on the Ethereum platform.
ETHEREUM’S TRUE IDENTITY
There are many websites where people can create a digital identity (e.g., Facebook, Twitter, LinkedIn). This isn’t very pleasant to manage, and at the end of the day, you don’t have full control of your information as a centralized entity still owns it.
Credit bureaus can put certain international groups and young companies at a disadvantage.
Lending Club, a peer-to-peer lending platform, addresses the problem of traditional financial services based solely on FICO scores by offering additional data points such as home ownership, income, and length of work.
COMPUTATIONAL POWER AND STORAGE
You must consider all the computational power and available storage that a person may have on their computer. It is a very similar concept when renting an available bedroom on Airbnb.
Akasha is a decentralized social media platform. There are no centralized servers, so neither party has complete control over the content. That’s why people buy bitcoin in London online without getting into much trouble.
An added benefit of creating a decentralized application for social media on Ethereum is that you can create a system that rewards high-quality content. This is like Reddit, where you can send small amounts of money instead of casting votes with the famous “little hand up. “
Decentralized applications can be used to bring transparency to multiple industries. For example, Breaker offers an entertainment rights management platform that enables the transparent distribution of funds to creators, investors, members, actors, and others involved in the project.
There are no centralized third parties that can prevent a certain group from accessing your funds because the terms are applied by code. Everyone will receive payment according to the terms discussed above, and no third party will be needed to mediate.
Lastly, one of the main use cases for Ethereum is decentralized fundraising from a global network of investors. ICO crowd sales further reduce entry barriers for developers working on high-risk projects.
Since Ethereum launched in July 2015, unprecedented amounts of funds raised for decentralized applications have been seen through crowdsales.
WHAT ARE ETHEREUM TOKENS?
Before learning what an Ethereum token is, it is important first to understand the Ethereum cryptocurrency fundamentals. Because now, you can buy bitcoin in UK online.
The Ethereum tokens are digital assets that are created in the main part of the chain block Ethereum.
These digital assets take advantage of the existing Ethereum infrastructure instead of creating a completely new blockchain.
COMPARISON WITH ETHEREUM TOKENS
This is similar to an App Store that provides a platform for iOS applications with some programs that issue their digital currencies that are used within the game or the system itself.
The Ethereum token can represent anything from a physical object such as Digix gold to a native currency used to pay Golem transaction fees.