Assets, Ethereum

Is Ethereum a Permissioned Blockchain?

Ethereum is a public, decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.

The project was bootstrapped via an ether presale in August 2014 by fans all around the world. It is developed by the Ethereum Foundation, a Swiss non-profit, with contributions from great minds across the globe.

Ethereum is often described as a digital currency but here’s something important to remember: Ethereum is much more than that. Ethereum is like the internet in that it’s a platform that can be used to build decentralized applications.

The difference is that the Ethereum network isn’t controlled by any one entity like the internet is controlled by corporations like Google, Facebook, and Amazon. Instead, it’s an open network that anyone can build on top of.

NOTE: WARNING: Ethereum is NOT a permissioned blockchain. It is an open, permissionless blockchain that anyone can join and interact with. Therefore, it does not require permission from any entity to join or transact on the network.

This means there is no central point of control or failure for Ethereum applications. If one app on Ethereum fails, it doesn’t mean the whole network fails with it.

And because there’s no central point of control, there are also no limits on what you can build on Ethereum.

So far, people have used Ethereum to build everything from digital wallets to digital currencies to decentralized exchanges and even a decentralized Wikipedia. And because anyone can build on Ethereum, there are already thousands of different applications running on the network today with more being built every day.

The sky really is the limit when it comes to what you can build on Ethereum which is why it’s so important to keep an eye on this project as it continues to grow and evolve.

Yes, Ethereum is a permissioned blockchain because it’s public, decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

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