Ethereum has become the latest buzzword in the world of blockchain technology. While bitcoin may have given us a preview into the future based on decentralized applications, or Dapps, Ethereum is taking a giant leap forward given its ability to solve real-life problems.
Ethereum represents a paradigm shift in the way we view software. As the potential of Ethereum is gradually being revealed, innovative startups are rapidly advancing towards creating the next unicorns with decentralized applications. Here are 5 reasons why startups are utilizing the Ethereum Network to build Dapps.
Ethereum Network is an open-source platform that is fueling the development and deployment of decentralized applications. It was conceptualized by Vitalik Buterin in 2013. Since then, Ethereum has grown to become one of the leading technologies of interest to app developers and is likely to revolutionize open-source development.
Although Ethereum is often associated with Bitcoin, blockchain technology also has many other applications other than cyptocurrencies. Unlike the Bitcoin blockchain, which is used solely for tracking ownership of digital currency, the Ethereum blockchain is instead used for running the programming code of Dapps.
Without a central point of failure and the security of cryptography, Ethereum ensures that applications are well protected against cyber attacks and fraud. In addition, having apps based upon a consensus among its developers, the app is inherently immune to tampering and censorship.
Another major concern when it comes to security, for app developers and app users alike, is identity theft. Apps on the Ethereum Network can protect user data by implementing a series of cryptographic protocols. In fact, one company, KYC-Chain, is already doing this by using Ethereum to help its customers manage their own identities.
KYC-Chain provides a secure platform for sharing verifiable identity claims, data or documents suitable to satisfy compliance requirements for KYC onboarding or refresh. The goal of the application is to keep regulators satisfied by implementing Smart verification procedures within organizations while also giving end users the ability to manage their own identity data.
Out of all of the features that the Ethereum Network has to offer, smart contracts are likely the biggest draw of Ethereum for app startups. The Ethereum platform was built specifically for creating smart contracts and it allows developers to program their own smart contracts. Ethereum runs the code for a smart contract whenever a user or another contract sends a message along with enough transaction fees to process the smart contract.
As the original creator of smart contracts, computer scientist and cryptographer, Nick Szabo, so aptly explained in his famous example, users could input data or value, and receive a finite item from a machine, in this case a real-world snack.
Smart contracts are highly versatile and have the ability to:
Because smart contracts run on the blockchain, they will always run exactly as they have been programmed to run, without the potential for censorship, fraud, downtime, or interference from a third party.
Unlike other blockchains, Ethereum is not limited to a finite number of operations. In fact, the Ethereum Virtual Machine (EVM), which is Ethereum’s core innovation is a software that will allow any developer to run a program, regardless of the programming language. This makes it possible to create many different applications on a single platform instead of having to use an original blockchain for every new application.
Unlike traditional apps that rely on individual data centers, Dapps built on Ethereum have many servers, which are nodes that are run by miners. As a result, if some nodes fail, other nodes will still work allowing access to the app. In addition, the failure of individual nodes won’t influence other nodes to crash. Ethereum applications are also resistant to many different types of attacks including denial of service (DDoS) attacks thanks to the decentralized nature of applications built on a blockchain.
Ethereum has already become a de facto leader among blockchain platforms having already been adopted by major banks and tech companies. JPMorgan recently introduced its Quorum platform, an enterprise-focused platform that has been architected and developed around the Go Ethereum client. Quorum supports both transaction-level privacy and network-wide transparency in order to enable the adoption of blockchain technology within the financial industry.
Microsoft has also announced its Bletchley platform as a means of developing the technologies and ecosystem to bring blockchain to enterprises, governments, and people. Microsoft Azure serves as the cloud platform for the development and delivery of applications. The goal of the platform is to eventually deliver Blockchain as a Service (BaaS).
The emergence of these platforms demonstrates that Ethereum Network has a bright future ahead which is instilling confidence in startups to build applications using Ethereum technology.
From financial transactions to intellectual property and company agreements, Ethereum can be used to codify, decentralize, secure, and trade virtually anything. As a result, the possibilities for startups are virtually endless with Ethereum.
Achievion can help you devise a plan to execute your vision. From startup planning to development, we can advise you on how to get your Dapp startup off the ground. Schedule a free consultation with us today and let’s get started.
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