Ethereum Explained: Project, Platform, Fuel, Battery

The Ethereum Project is a community-driven initiative to create a next-generation distributed applications platform. It is designed to be as versatile and powerful as possible in the opportunities it creates.

Ethereum Platform: A Combination of Network and Blockchain

The Ethereum Platform is a combination of a peer-to-peer network and next-generation blockchain architecture. It provides a consensus-based decentralized platform for developing, delivering, and accessing distributed application services. An application that is consumer-facing, called EtherBrowser, integrates the back-end and the front-end to form a framework that enables anyone to quickly and easily build secure, scalable, interoperable, and decentralized apps.

Similar to the BitToTherent content sharing system, Ethereum Network nodes will run on thousands of computers all over the world, and their operations can’t be stopped if the internet is down. This is because peer-to-peer networks usually involve a large number of independent actors (individuals, organizations), each running the peer software on one or more computers. In the Bitcoin network, these nodes are known as the system “miners.”

Similarly to Bitcoin, in Ethereum the network nodes are miners that process transactions and validate calculations in the system. This allows for fast consensus about what has happened in the system. The network’s security is ensured by consensus. The more nodes that vote on network events, the more confident they feel that the consensus view is the most reliable and accurate one. In Ethereum, miners are paid for the work required to inform and enable their vote.

Bitcoin is a way of securely transmitting and storing valuable information. It can serve as the financial foundation for the new decentralized global economy. It is a conservative and prudent roadmap to development. Bitcoin will be easier to use and protect the protocol from any quirks or edge cases that could be exploited in the future. However, it has proven to be extremely reliable at the protocol level. On the other hand, as a platform for hosting distributed and decentralized applications (ÐApps, pronounced “dapps” or “eth-apps” to insiders 🙂 ) and services, Ethereum needs to be agile and a skilled professional. In Q4 2014 Ethereum team will deliver a feature-rich system that will be fully functional with a rich user interface and provide a compelling user experience for both end-users and businesses building ÐApps services.

Ether – Cryptofuel Explained

Just like the Bitcoin system, Ethereum uses a token called ether (in lowercase), which acts as an exchange unit to a certain degree, but it also acts as a fuel. It powers many applications on the Ethereum system.

Engineers at the Ethereum Project are creating a computer device or machine in the form of a software program that anyone can download to run on their smartphone, computer or dedicated hardware. To operate this software machine, you will need a specific type of token to provide fuel in the required amounts.

Organizations and individuals are interested in buying ETH to power their trading applications, use trading applications offered to them by other service providers, trade at future exchanges, or store speculatively for future sales to individuals or businesses. ETH can also be purchased at the Genesis Sale. You can find more information about future exchanges and third party ATMs in this space. Additionally, you can read about exchanges that have been implemented as DApps on the Ethereum blockchain.

By buying ETH at the Genesis Sale, the buyer is supporting the development of the product in the same way as a kickstarter campaign. Once the product has been completed and shipped, buyers can claim their ETH from the genesis, or root block of the Ethereum blockchain.

Ethereum Software Stack Explained

Software stacks are a collection of technologies that can be used together to create a complete service for the end user. Ethereum provides a full-stack solution for developing and delivering ÐApps. An end user can access the front-end from a website, dedicated frontend applications or, most commonly, from the Ethereum ÐApp Browser. The Ethereum stack is the first of its kind that allows developers to deliver high-quality software applications.

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