Ethereum is the next generation of blockchain since it is programmable. In the case of bitcoin operations users are given a set of predefined operations, but with Ethereum our team can create operations of any complexity. Therefore it serves as a platform for many decentralized applications of blockchain and not only limited to cryptocurrencies. In other words Ethereum has a whole programing platform on top of its cryptocurrency which is implemented in every client. The programs are called DApps or Decentralized Applications. Ethereum Client Architecture can be visualized like this.
The Ethereum Client consists of:
- Peer-to-peer (P2P) wire-protocol network for routing and maintaining connections
- A copy of all transactions in the blockchain database
- Consensus on all clients(nodes) of the blockchain which includes mining, verifying and propagating blocks
- Maintenance of private or public keys which is encrypted in a key file, saved only in that client, the user is using. The keys are the ownership and also the identity in the contracts.
- The DApps, ‘smart’ contracts, running on the Ethereum Virtual Machine, EVM. Transactions addressing contracts are triggering the execution of them on the EVM.
The applications of Ethereum are unlimited. Smart contracts are examples of applications that run on Ethereum platform exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. Few examples implemented are trade clearing and settlement, insurance claim processing, electronic medical records, personal health tracking, royalty distribution, autonomous electric vehicle charging stations, supply chain and trade finance documentation, peer-to peer transacting and voting. TOBLOCKCHAIN can help you develop and implement use cases for your requirements leveraging on the increased trust, privacy and lower costs.