Assets, Ethereum

Is Ethereum a Protocol?

Ethereum is a 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 middleman 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.

NOTE: Warning: Ethereum is not a protocol, it is a platform and programming language that enables developers to build and deploy decentralized applications. It is also important to note that Ethereum is only one of many blockchain technologies available today. As such, it may not be the best choice for all applications.

Ethereum is often described as a digital currency but here’s something important to keep in mind: Ethereum is much more than that. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. While it is true that you can use Ethereum to send and receive payments, Ethereum’s real power lies in its ability to run decentralized applications (dapps).

A dapp is an application that runs on the Ethereum network and utilizes smart contracts to function. Dapps are often compared to traditional apps because they offer similar functionality; however, dapps have some key advantages over traditional apps. First and foremost, dapps are decentralized; they are not controlled by any single entity. This means that they are not subject to censorship or downtime like traditional apps are.

Additionally, dapps run on the Ethereum network, which means they can utilize the network’s resources (such as processing power and storage) without being limited by them. Finally, dapps are open source; anyone can audit them and contribute to their development.

So, what does this all mean for you? If you’re looking for an investment opportunity, Ethereum offers tremendous potential; if you’re looking for a platform on which to build dapps, Ethereum is unrivaled; if you’re looking for a payment system that is fast, cheap, and secure, again, Ethereum has you covered. In short: Is Ethereum a protocol? Absolutely!.

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