You’ve Heard Of Ethereum, Now It’s Time To Know What It Actually Is
Even before you know what ethereum is, you need to understand how the internet works. Our data, which includes personal information – passwords, banking information – are mostly stored on other computers besides out own. This is the idea behind what we know today as “The Cloud”. Servers owned by companies like Facebook, Google, and even Amazon store large amounts of information. Even the article that you’re reading right now is stored on some type of server.
The cloud has thus given everyone using it a large advantage and many conveniences. Companies can roll out teams of employees with specific focuses that aid in storing and securing this information. This also removes much of the user cost associated with hosting the actual server and making sure that the service is up as much as possible. When it comes to blockchain technology, in general, the idea of the cloud can be implemented for users.
But with this ease of use can come risk. As many have already seen with recent bitcoin and other cryptocurrency hacks, teams of tech savvy individuals and even the government can gain access – warranted or not – to files that are stored on the cloud. This can result in loss, leak, or change of vital information.
Many argue that the internet was always meant to be decentralized. There has been a recent movement, which has recently come about around utilizing new means to achieve a decentralized web. Blockchain technology is one of these new means.
While things like Bitcoin have taken aim at companies like PayPal and other online banking portals, Ethereum is different and uses blockchain to replace third parties on the internet. This is to say that the technology is looking to remove the layers of storage, transferences, and other interferences.
Ethereum wants to be a global infrastructure. Many say that this is made to decentralize and even democratize the client-server model. Ethereum servers and clouds are not used. Rather, thousands of “nodes” that are run by volunteers from across the globe are deployed.
For example, if you scroll through an app store you will see a number of colorful boxes that represent applications. Anything from banking apps to social media apps are at your fingertips. The apps rely on third party providers to store information like credit cards, buying history, and additional personal data. With Ethereum, if all is in line with the plan, would return control of data in these services to the owner and the creative rights would be given back to the author. Instead, application companies like Apple and Google take control. This is what Ethereum helps mitigate.
Since there is not one entity that has control over everything, there isn’t a single person who could just go and “delete” a transaction or in the above example, there’s no one that would be able to delete that application (like Apple or Google can right now). Only users can make changes. The main idea is that control is given back to the parties who agreed to 1. Offer the app and 2. Download the app