Although Bitcoin set the standard for blockchains, Ethereum saw what set Bitcoin apart from many others attempting to be the standard and took it up a notch.
Ethereum is a blockchain that not only allows you to utilize a cryptocurrency, Ether, which is also known by its symbol ETH. But it took the standards(also known as its Consensus) Bitcoin implemented and upgraded, letting you do so much more than make simple transactions with its native cryptocurrency.
What Else Can you do on Ethereum?
With Ethereum, you can build what is called DAPPs(Decentralized Applications), which allow you to utilize web development tools/libraries giving you the ability to build web-based applications that can interact with the blockchain. It is awesome as I have built some great DAPPs utilizing tools created by the web3 community.
You can create your own collection of NFTs, create your own Decentralized organizations(DAOs) that allow users to vote on certain feature implementations, implement financial protocols that are decentralized(Defi), build decentralized chat apps and so many more. The possibilities are endless with what you can build, which is very exciting.
How does Ethereum work?
You might be wondering, “how does this decentralized chain work to allow us to build all these amazing applications?”.
To get technical about it, Ethereum runs on a set of standards, known as Consensus. It monitors the network of nodes(aka computers) that run the chain. Each node that is part of the network has a copy of the Ethereum blockchain and proof against each other to ensure everything that goes on in the blockchain runs smoothly. As well as securely as possible.
How these nodes prove against each other is they use what is called a Sybil resistance mechanism which is just the rules the nodes follow for the chain to run smoothly. Proof of work is the current mechanism they use to verify the transactions that take place on the blockchain.
But when the big Ethereum upgrade drops in September, they are going to transition from Proof of Work to Proof of Stake. Which is going to have profound enhancements on the flow of the chain. I will definitely be covering this upgrade in more detail as it is very exciting for the web3 space.
What sets Ethereum Apart?
Ethereum implements very similar standards that Bitcoin implemented to set the tone for blockchains but Ethereum as I have said recognized the potential in something more than simple transactions.
They made the chain programmable. Allowing you to build smart contracts utilizing a programming language called Solidity.
It has given developers the freedom to build decentralized applications setting the tone for the web space. Because of this, it led to the innovation of NFTs, DAOs, Defi, DAPPs, and so much more.
The space is continuing to grow at an incredible pace, and it is great to see the growth, especially with Ethereum still in its early stages!
Inspiring Innovation
Ethereum is great but I have mentioned in a recent story that it does have some downfalls since it is very young with kinks that need to be worked out.
But there have been many innovations in the space to make what Ethereum has given us even better.
There has been the creation of what are called Layer 2 solutions which are built on top of the Layer 1 protocols(aka Ethereum since it is a base chain) to improve scalability to help reduce network bottleneck and gas fees.
It is inspiring seeing the community get together to make Ethereum even better, to make it more of a fun and better experience for everyone.
With Ethereum 2.0 coming soon, it's only going to get better, so I cannot wait to see the beacon chain merge for the new changes to take effect.
Conclusion
Ethereum is a powerful blockchain that took what Bitcoin built and made it even better. It has only begun to shift the future of the web so there is more to come:)
Resources
Also if you’d like to read more awesome content, check out my post on some of its downfalls its a good read and I’ll have it linked below:
And here are some great external resources provided by Ethereum that you can learn so much more from:
