Ethereum is a programmable transaction platform on a public blockchain that uses a Cryptocurrency called Ether to execute peer-to-peer contracts by providing a decentralized virtual machine that does the processing
The Decentralized Ethereum Network in unaffected when a node goes down as all the info is shared across the entire blockchain.
Conventional non Ethereum Server Setup.
Normal Server Setups are hard to share data and when a node goes down many users connected to that server is affected.
How Ethereum Works
- Ethereum is the way the internet was supposed to work with a decentralized platform that stores information and is unaffected by any single downtime event in in area, oblivious to fraud and incorruptible.
- Ethereum is a decentralized platform that enables the running of smart contracts all over the globe, the contracts run exactly as programmed for events that take place now and future events and is immune to third party interference.
- Ethereum was crowdfunded and founded in August 2014
Buying a Car through an Ethereum Contract
An Example of an Ethereum Smart Contract will be where you would buy a car financed by a bank through an Ethereum Smart Contract
The Bank Controls the Smart Contract
Now the bank will be the owner of the smart contract in this case and the rules and requirements will be dictated in terms of payment arrangements in the smart contract.
Payment of the contract is monitored by the Ethereum Smart Contract
In the event that your payment is late the smart contract will automatically follow a set of rules programmed at inception.
Microchips execute rules sets from the Ethereum Smart Contract Blockchain
In the event of a late payment the microchip in the car will lock the vehicle or restrict the vehicle from working unless the outstanding payment is made
What is Ethereum Mining?
Example of an Etherium Rig