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Basics of Ethereum

Ethereum is a Blockchain network that provides an open software platform to developers that enables them to build and position decentralized applications.

The users of a decentralized application or Dapp are served with some particular services. The most common example of a Dapp is Bitcoin that provides a peer to peer electronic cash system that facilitates its users to make online payments. These applications comprise of codes that run on Blockchain network making them free of central control.

It implies that any service that is running on a centralized platform can be made decentralized by putting it on the Ethereum platform. This platform is enabling various industries to shift their intermediary services on Blockchain and make them direct and peer to peer. Several services like loans, title registries, voting systems and regulatory compliance can be transformed by putting them on the Blockchain.

Ethereum Blockchain can also be utilized to provide the necessary platform for the creation of Decentralized Autonomous Organizations (DAO). These organizations are completely autonomous, decentralized and lack a single leader. DAOs are the compilation of smart contracts that are written on Ethereum Blockchain and are run by programming code.

The rules and construction of a traditional organization are swapped by codes performing the same function. This eliminates the requirement of people and centralized control to run an organization. The ownership of a DAO lies in the hands of people who purchase its tokens. The tokens here earn them voting rights instead of providing them with equity shares.

The platform of Ethereum is also being utilized for the creation of other cryptocurrencies, which are known as ERC20 compliant tokens. Other developers can issue their own version of cryptocurrencies due to the Ethereum Foundation defined ERC20 token standard.

The developers can then raise funds by launching an Initial Coin Offering (ICO). In the last two years, people have raised billions of dollars through ICOs on the Ethereum platform. In fact, one of the most valuable cryptocurrency available in the market, EOS, is an ERC20 token.

In recent times, Ethereum has also generated a new standard by the name ERC721 tokens with the purpose of keeping a track of unique digital assets. These tokens allow people to prove their ownership of uncommon digital goods.