To get a grasp of Altcoin Ethereum, one first needs to have an understanding of the internet.
Nowadays, your private passwords and various information used for financial transactions are mostly kept secure on computers other than your own. Amazon and Google store an incredible amount of data for their users. For instance, this text is located on a hosting server offered by a company. This way of handling data has numerous advantages because each company has people who work on security and storage of information. As a result, the price of upkeep is reduced because it is transferred to these specialized companies.
However, with such ease of use, come issues concerning vulnerability. It happens every once in a while that hackers infiltrate systems and steal data. Some say this centralized design is a major flaw and that we should work to decentralize the internet as much as possible. That’s why a lot of groups have come up with new ways of moving this goal forward. One such tool in this push includes the blockchain which helps power cryptocurrencies.
Ethereum is a recent and notable example to come from this decentralization movement. Ethereum differs significantly from Bitcoin. While the latter wants to take over banking on the internet, Ethereum aims to switch current systems for blockchain technology. These systems include the above-mentioned third parties which store your personal data (Google, Facebook) as well as much more sophisticated systems used for mortgages and finances So the goal of Ethereum is decentralization of the whole model based on servers and clients.
The system put in place by Ethereum uses legions of nodes which are operated by users and these users form a world network. Hopefully, the end result is that people will be able to connect to the network from anywhere on the planet and offer various services through this system. If you take a look at the Google Play Store, you’ll see lots of different applications, but all of which rely on their parent company or services from a third-party to store your information.
Even the applications available are controlled by someone else; in this, instance Google. You can even take Google Docs as an example. If Ethereum manages to take roots, services like these will in the future hand control of data back to owners and the intellectual property rights back to the author. Companies will no longer have control over what you write in your notes, for example, or be able to switch the service off due to a ban. The theory of Ehtereum puts together ease of access that all of us are used to with a new level of control over your own data.
Every time you make a change to your notes and click save, each user of the network or node will write down the modification. Ethereum is still in its infancy, but it promises to bring a revolution to the way we use online services and treat our personal data.