Most people don’t understand Ethereum.
My goal in this blog post is to help you become one of the few people that actually do.
First, Blockchain technology was created around this idea of decentralization, security, and cryptography.
Although it can be fascinating, you don’t need to know too much about these technicals.
How do most people view Ethereum, and what are they missing?
Ethereum means many things to different people.
To some, its a cryptocurrency. Its a token and you can buy and sell and speculate on, just like any stock or asset.
To other people, Ethereum is the entry point into the world of DeFi, and the slightly shady world of lending, borrowing and yield farming.
Some people use Ethereum buy into web3 projects like NFT’s or other crypto tokens.
To others, Ethereum is like a cousin of Bitcoin with high-transaction fees.
All of these various “identities” that Ethereum might take on are not wrong, but they’re lacking the big picture.
Ethereum is more than just a cryptocurrency.
This is based on the principle that blockchains can be used for more than just currency.
Yes – the first use case of blockchain was the Bitcoin cryptocurrency, and it is extremely valuable because it solves the double spend problem.
But the principles of blockchain that enable currency can be applied in many other unique and creative ways.
Solving the double spend problem is just the first of many.
However, in order to apply blockchain tech to problems in the world and on the internet, we needed a way to build apps and systems that has blockchain technology built in.
We needed a blockchain software development platform.
This is why Ethereum was invented.
What is Ethereum, really?
Ethereum is first and foremost a computer built on the technical fundamentals of blockchain.
Ethereum is a COMPUTER.
Remember computers in the 90s and 2000s and even the ones we have now aka smartphones?
Well, the Ethereum computer is like that but its built on a new architecture using blockchain.
The technical fundamentals of Ethereum are sound. Its a distributed computer, meaning it runs on a network of linked nodes instead of a single motherboard and processor.
And blockchains fundamentals of decentralization, cryptography, and security have been built in… so its different from other computers because of this.
Given that Ethereum is a computer, this means that Ethereum can serve as a platform that allows applications to flourish.
And it provides the tools to do so.
By tools, I’m talking programming languages, developer documentation, Github repositories, communities, etc.
Yes, Ethereum actually has a programming language called “Solidity” that allows any developers to write code and build an application using the Ethereum blockchain as a platform.
Doing so allows developers to build the front-end that users interact with, while maintaining the solid technical fundamentals like decentralization that Ethereum promises.
Since 2017 when I first learned about Ethereum, this is by and large the biggest reason that I believe in its future.
I wanted to invest in a technically sound project that was seeking to re-engineer the internet and the way computing can be architected.
A technically sound blockchain platform would ensure that software engineers and developers would be driven to use it.
And in technology, if developers use it, then the business people will follow.
The platforms that allow applications to be built will be the biggest winners.
This is really true for any industry.
For this reason, I am bullish on Ethereum.