Ethereum is a public blockchain that keep records of digital transaction. It is based on the principle of blockchain, where blockchain is only used for the safe transaction of cryptocurrency Ethereum can be used for any kind of transaction made online. It is public, decentralized i.e doesn’t require any central authority. It’s immutable i.e it is hard to break in, it can only be accessed by a key. The transactions made in Ethereum are verified by a miner. Every-time a block is proved by a miner an ether is generated and awarded. Ethereum uses an intrinsic digital token called ‘ether’.
How is it being used?
- Decentralized Finance –
A system that is built on blockchain or Ethereum, an open source network that can be used to make monetary exchange. Why should it be used?
- It is decentralised, records are kept simultaneously across thousands of computers.
- Permissionless, anyone in the world can access it.
- Trustless, a central authority is not required to verify transactions.
- Transparent, all transactions are made publicly.
In this system participants will access to the decentralized app to participate in global market. Anyone with internet and a smartphone can use these apps. In such a system, a farmer in india can connect with a trader in united states. In the current system it is expensive to send money across borders however with DeFi remittance fees will be eliminated.
In the current system all the user information is stored in server farms which puts it at risk of theft, arson etc. however in DeFi a user has full custody of their wealth and can securely make transactions without watch of a central authority. No one can steal or have access to their wealth without a key. All transactions are immutable.
In a decentralized financial system, transactions are immutable and blockchains can’t be shut off by central institutions like governments, central banks, or big corporations.
The only disadvantage of DeFi is volatility of digital currency how this has also overcome by “MakerDAO” which through the use of elaborate ethereum smart contracts has enabled the creation of stable coin “Dai” that is backed by ether os always worth $1. It is an open platform that can be used by anyone, provide high quality financial service with fair credit for everyone.
- Decentralized Identity –
We have evolved floppy disks to cloud but now every-time a data is collected, processed, stored a privacy concern emerges. People have turned to banks and government to protect their identity however with recent hacks it is certain that they are not ready for the role. Hence comes the decentralized, it gives people power over their identity. Its based on ethereum blockchain. It gives them the control and protection. How blockchain helps? It stores information in blocks that can only be accessed by a key. A key cryptographically made that can not be copied or recreated. Any attempt of break in will be recorded and notified. In a decentralized system a hacker might have personal information of a user but they have no way to prove it without a key. The ability to prove you are who you are is critical in an engaging world.
Uport is such decentralized application that allows users to register their data on ethereum. A key is made through which users can access, share their data. Misplacement of key by the user will lead to the loss of data.
KYC-chain is another digital wallet that allows users to share only the information of their choice. It employs trusted gatekeepers who can be any individual or an entity like notary that will verify the KYC documents.
- Tokenization –
Tokens are the blockchain based representation of the real world assets. By tokenizing these assets, user can transfer and transact in them much more easily. By storing assets in security tokens, user has benefits like improved liquidity, distribution, investor relations.
Open finance, a blockchain startup just announced a first fully US regulated security token exchange.
Another such application is aboveboard, a public blockchain based company. The company distributed all of its stock in ethereum. The stock is represented as ERC20 token. It provides a reliable global base for tracking the stock, programming its behavior, and exchanging it.Investors from many different countries can acquire the stock after qualifying to be on local blockchain “whitelists”. Unlike cryptocurrencies, programmable securities are safe for investors that care about custody. It keeps a list of its stakeholders. Real time visibility if it’s shareholders. There is a network of brokers and qualifiers.
- Health Application –
Using ethereum blockchain, the medical information of person can be shared globally. For example a patient in india can consult with the doctors of new york if their medical information is stored in ethereum blockchain. Medical information can be easily shared via this. It takes away the need of medical scribbers. Not just doctors, the medical information can be shared with the medical institutions for the research purpose or pharmaceutical industries for the testing of a new drug or to check the authenticity of a drug. The data stored by the smartwatches can directly be shared with the medical professionals around the world, making it easier to recognize the pattern of a disease like heartbeat. For organ transplants, patients have to wait for years to get a matched organ in a country let alone globally and as the time period increases the success of an organ transplant decreases. Hence if the patient’s medical record are stored in a public transplant, the search for a matched organ can be made easy. Ethereum enables secure and structured data sharing among medical community through decentralization. It protects the patient’s data and privacy and shows the previous doctor records in the database. Patients can control how much they want to share with whom.
Healthureum is a platform based on ethereum, it uses smart contract to increase efficiency and interoperability of healthcare industry. Healthureum token is the transaction medium. The token will provide a fast and efficient method of payment which can be used globally. It is peer to peer so no third party fees is involved.
Another such initiative is amchart, it’s similar to healthureum however it doesn’t uses tokens for the transaction.
- Security Infrastructure –
The fact that there is no central server for a hacker to attack makes it a lot harder to break into. It’s distributed ledger makes it harder to edit information, any attempts at it will be recorded. It can’t be said that it’s impossible to hack blockchain but it’s effective and difficult which makes it useful.
- Microblogging –
In social media, there are a lot of community rules that a user may not agree with, censorship, terms and conditions, violation of social media guidelines. All of these restrict a user to share their personal views. Sometimes even if the content is not offensive or an account, it gets taken down due to no. of reports of or disagreeable users. In a democratic world everyone has a right to share their opinions, speak their mind whether right or wrong, whether the society agrees to it or not but this centralized system prohibits them to be completely open and share. By using ethereum, a private (cult like) or public network can be made which is decentralized means there is no authority, no rules. In network with no rules and regulations, no prohibition and censorship anyone can share their views. The content uploaded can only be taken down by the uploader, no changes can be made in it, it can not be coped.
Eth-tweet is a decentralized social network that is similar to twitter, a user can express in 160 something characters . The only difference in twitter and eth-twitter is forner is centralized latter is not.
- Vevue project –
Similar to google street view.. It enables users to share a 30 sec clip of their surrounding. Requests are sent from the neighborhood, someone with a smartphone can make a video if their surrounding and upload it. Fro each video uploaded, a bitcoin will be awarded. The app is available on playstore but doesn’t reward coin at the moment.
- Payment –
Ethereum is transparent network hence everyone can see the amount transferred, balance. In financial sector, everyone wants privacy, hence Zcash, a cryptocurrency, hash in an app that is being developed for the safe transaction i.e nobody can know the amount transferred, the amount received and the balance.
- iExec –
Allow users to offer their computing resources and interact directly with buyers. Aim to decentralize the cloud. Fee is iExec internal cryptocurrency “RLC”. iExe does not receive any commission and interfering the transaction. RLC is like a utility token, used for the buying and selling. It is like an Airrbnb of server, here instead of accommodations computing services are provided.
- Smart Mobility –
Google has developed a “driverless car” that will run on itself. It has a total of eight sensors, the data that Google’s software receives is used to accurately identify other road. users and their behaviour patterns, plus commonly used highway signals. Ethereum is used for the communication.
- 4G capital –
It is harder for smaller business get funding which sometimes become the reason of their failure. 4G capital is Ethereum based app on which donors and investors can easily finance the small scale business globally.