“Blockchain is the next big thing,” is something we have frequently been hearing in the tech world in the recent times. The blockchain would have the same influence on our society that the internet had in the 90s. This has become the most accepted belief among the technology experts. The best way to understand blockchain is to get hands-on and realize what’s in it.
While most of us are acquainted with the name Bitcoin which was created in 2009, Ethereum Blockchain has been gaining prominence of late. So, The question about what is ethereum blockchain and how is it different from Bitcoin has been with me for a while now. I’ve found answers and tried to put my thoughts on Ethereum Blockchain.
So, let me try explaining my understanding of Ethereum Blockchain. The structure of the ethereum blockchain is quite similar to that of a bitcoin. It is a shared record of the entire transaction history. The history of the transaction is stored on every node of the network. The differentiator is that its nodes save the most recent state of each smart contract, in addition to all of the ether transactions.
For every ethereum application, the network needs to keep track of the ‘state,’ or the current information of all of these applications, including each user’s balance, all the smart contract code and where it’s all stored. In short, it would democratize the existing client-server model.
With ethereum, servers and clouds are replaced by many “nodes” run by volunteers from across the globe. The control solely lies with the owner and the author would have creative rights if everything goes as per the plan. Only a user can make the changes. Each time a user saves, edits, or adds or deletes notes, every node on the network marks the change.
Despite having many advantages, decentralized applications still have limitations. Humans are responsible for writing the smart contract, and the contract is only as good as those who write them. Unintended adverse actions can happen due to code bugs or oversights. If a bug in the code gets exploited, there is no option left other than rewriting the code. However, this is against the idea of blockchain which is meant to be immutable. Also, if the central party takes any action, it raises questions about the application being decentralized.
Here is something more on Blockchain you might be interested in. Blockchain in Enterprise: Avoid the disruption