Ethereum Transforms Apps into Secure Cryptocurrency Revenue Generators
Ethereum is integrating the security of blockchain into an application development platform to create the foundation for next generation applications that bring a new revenue model to the world of applications.
Let’s face it, every interaction comes at a price. Whether that price is measured in electrons, actions or currency isn’t what really matters initially, what matters is that the cost and the validity of that interaction is accounted for.
Nowhere is this truer than in the world of electronic interactions, where transactions are the mechanism for data to change virtual hands, while audit trails are the key element for determining the provenance of that data.
While the term “decentralized application” is somewhat shrouded in mysticism, developers can take stock in an industry definition surmised by the acronym DApps (Decentralized Applications). DApps in essence are applications that run across a decentralized network using a blockchain, where data is not stored locally (it’s stored on the network) and the applications execute across the network by using the resources of those connected to the network.
DApps run autonomously and independent of any centralized server
In short, DApps run autonomously and independent of any centralized server resource, bringing resiliency and global scale to applications, which have no single point of failure. While it may take some deep thought to appreciate the advantages offered by DApps, there are additional elements that bring even more value to the DApps ideology.
That additional value comes in the form of the blockchain platform which DApps execute upon. The foundation of blockchains are built upon tokens and those tokens can function as a type of currency, which can be assigned value. In other words, transactions executing across a blockchain can have costs associated with them, which can be translated into a form of cryptocurrency.
In Ethereum’s case, that takes the form of units called ether, which the company refers to as a fuel for the platform. Programs running on Ethereum need to pay for the resources consumed on the platform, hence each and every transaction/application event has a cost associated with it.
That ideology transforms the way applications are developed, shared, maintained and accessed, allowing developers to employ teams of contributors to improve applications, paying those contributors in ether, while those consuming the capabilities offered by those applications can be charged ether, re-inventing the economy of application development and consumption.
What’s more, as that DApps run on a blockchain, they are fully secure and protected – simply because blockchains create a distributed digital ledger that is shared among multiple parties. Blockchains can only be updated by a consensus of a majority of the participants and contain a certain and verifiable record of every transaction ever made and can never be deleted. Simply put, it is effectively impossible to falsify any event recorded in a blockchain, bringing full accountability to what happens with the transactions run by DApps.
However there is much more to Ethereum, Ether and DApps than the concept of a secure cryptocurrency. The very underpinnings of the platform creates an opportunity to distribute applications globally and still keep data protected, while installing accounting for scale, demand and usage. By using Ether as a fuel for transactions, excessive (or nonsensical) use can be curbed, while those demanding more resources for legitimate reasons can simply put more Ether in the tank.
DApps can also be built that tokenize contracts, SLAs or other business agreements and processes and then be distributed to the parties involved in an agreement, while being maintaining in a completely secure, auditable environment.
While Frontier may be only the first step in bringing a decentralized application economy to the web, it is clear that the path is being paved for cryptocurrency, tokens and DApps to become disruptive across enterprises both large and small.
Founded in 2013, Ethereum is an open source application leveraging a worldwide network of machines and not centralized servers. In 2014, the group completed a pre-sale of Ether – a necessary element for running decentralized applications on the Ethereum network – totaling over $18 million. The Ethereum Foundation (https://www.ethereum.org/foundation), a non-profit organization, was founded with the purpose of managing the funds that were raised from the Ether Sale in order to best serve the Ethereum and decentralized technology ecosystem. Ethereum has active communities world-wide (http://ethereum.meetup.com/).
For more information visit: http://www.ethereum.org