Introduction to Ethereum
1 min readMar 7, 2024
Ethereum Financial Services
- Pure currency exchanges
- The original use for blockchain
- Easy transfer of digital currency
Cryptocurrency
- No government backing, Ex: Bitcoin, Ether (ETH)
- Can create your own tokens
Real estate
- Blockchain works well transferring assests
- Write out legal and financial rules (if rules are met, transfer the asset — real estate)
- Automate escrow
ERC-725 Standard
- Smart contract interface
- Associate Ethereum accounts with real-world identities
- Establish an account and make a claim against that account
Smart Contracts
- Rules to register a transaction in the blockchain
- Ethereum creates special runtime environment for smart contracts
- Program that can only run in a specialized environment
- The Ethereum Virtual Machine (EVM) — Virtual machine means it runs within another operating system
- Every node runs every smart contract
- Smart contracts are deterministic — Output is the same on all nodes
Creating an Ethereum address means creating keys
- Private and public key
- Public key provides your account address
- Private key must stay secure
- A wallet stores private keys securely
- Use private key to access cryptoassets
Initial Coin Offering (ICO)
- Similar to an Initial Public Offering (IPO)
- Describes the business
- Asks for investment
Decentralized Autonomous Organization (DAO)
Development and testing blockchains
- Develop apps using local blockchain
- Test apps using test blockchain (doesn’t use real money)
How Blockchain Apps are Different
- Decentralized storage (cost of accessing data)
- Decentralized processing (runs on multiple nodes)
- Bugs will always be there (find bugs before deployment)