Ethereum’s goal is to become the ‘global computer’. To connect every computer on the entire planet in one massive global network. A goal as lofty as this, particularly one that’s being delivered upon, must be fundamentally important.
Before you can understand why Ethereum is important, first you have to understand what it is. Bettina Warburg said it best. “At its core, it’s closest to Wikipedia.” It’s a ledger that’s immutable, an open global platform that allows us to create a user controlled portable identity. Like a wiki, though the identity may change over time, the record of that ledger never changes. What this means is that companies that have shown to default are accountable, forever. Companies have to create trust and fulfil that trust in order to survive on the network. But what capacity does Ethereum have to fulfil business needs? What can be created on the network? What is its potential?
DAO (Decentralised autonomous organisations)
A decentralised autonomous organisation creates a peer to peer applications which allows for users to interact with each other without a centralised organisation taking a substantial percentage. Sometimes up to 10-15% on standard platforms. Companies that disrupt the marketplace can live on the blockchain. There is no reason why Air BnB couldn’t be on the blockchain, nor E-lancer, or Uber for that matter.
Remittances on the Ethereum network are fast, cheap and efficient. You can send your money from England to Timbuktu quickly and quietly. Anonymously and securely, not with standing the fact that by utilising decentralised networks like Ethereum you remove the issue of third party fees. No longer will you be required to pay the bank $25 every time you want to send money home.
The smart contracts allow for transactions to be created between parties. A basic example of this would be Escrow. By entering into a smart contract you set up a trigger (action) which if say four people enter their key. X amount of Ethereum is released to those four parties. It allows for contracts to be created securely on the network. What makes it particularly interesting is that the contract is immutable. Once it’s set up and agreed to, the terms of the contract have to be fulfilled before the funds can be released. Any change has to be ratified by both parties before the release of the funds.
These are the holy trinity of blockchain, it’s what allows for a decentralised network to truly engage with the business world. To disrupt institutions or at the minimum, to force them to transform. Ethereum is one of the major players set to do just that. Ethereum’s disruptive capabilities are varied and crucial to a stable global environment. Notable uses for this particular blockchain are property transactions, voting, and the transportation of medication.
It’s not a game changer, it’s a whole new game.