Most people don’t understand blockchain, let alone Ethereum.
What is Blockchain?
Blockchain is basically a database that everyone shares.
Anyone can write to the database.
Blockchain enables users to attain self sovereignty over their money and wealth. To do so, all you need is a non-custodial crypto wallet.
What is Ethereum?
Ethereum is a decentralized world computer.
Ethereum possesses all the key tenets of decentralization, security, and cryptography, which are fundamental to blockchain.
Beyond that, Ethereum is fully programmable, where any application can be built.
The investment case for Ethereum (and hence ETH) is that it will become the most liquid token in a digital economy built atop of a Turing-complete decentralized computer that can execute smart contracts.
How do most people view Ethereum, and what are they missing?
Ethereum means many things to different people.
To some, it is a cryptocurrency… 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 express the magic of the Ethereum Virtual Machine.
When you combine all these applications of Ethereum, you start to see the big picture:
Ethereum is more than a cryptocurrency – it is programmable money.
Of course, 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. This is what Ethereum focuses on.
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.
Ethereum is a Platform Where Any Application Can Be Built
Ethereum is first and foremost a computer built on the technical fundamentals of blockchain.
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. Ethereum it provides the tools for this.
Solidity is the Programming Language for Ethereum
By tools, I’m talking programming languages, developer documentation, Github repositories, communities, etc.
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 true for any industry. For this reason, I am bullish on Ethereum.