If Bitcoin was created to replace the old monetary system, Ethereum (ETH) was created to be the future of the internet. Ethereum’s goal is to create a vibrant, decentralized, secure, and open blockchain-based platform. Its goal is to eventually replace current centralized data platforms such as Google, Amazon, Facebook, and those that are vulnerable to cyber-attacks and single-points of failure or threaten user data privacy. Here are the main functionalities of Ethereum that could make other centralized platforms obsolete.
Ethereum offers a unique function called “Smart Contracts” which is a programmable contract that lives on Ethereum’s blockchain. It digitally verifies, facilitates, and enforces a contract between different parties, where certain actions or conditions can be pre-coded. This allows smart contracts to perform and verify any transaction without trusting in third parties.
Smart contracts also allow other projects to build on Ethereum blockchain without having to create their own chains. This significantly reduces the amount of capital and time required, enabling a highly robust community which led to the ICOs boom in 2017.