Ethereum: Making Business With Trustable Technology
When Satoshi Nakamoto launched the Bitcoin in 2009, we didn’t know that we were about to see the great digital revolution of finances that took place at that moment. With his innovative currency system, we were able for the very first time to have a highly secure and decentralized scheme of transactions through internet, getting rid of the traditional intermediaries that control our monetary activities.However, Nakamoto basically limited his innovative technology to the exchange of virtual money (also called cryptocurrency). This somehow opened the doors to some developers that realized the real potential of this new decentralized blockchain, noting that it could be used for much more than just making digital transactions.
That’s how Vitalik Buterin, a former programmer of Bitcoin, conceived the idea of creating a decentralized platform that could “democratize” the internet, integrating people in freer interactions through innovative applications.
So, Ethereum is a company that takes the Bitcoin idea of creating a decentralized virtual currency and goes beyond, giving a platform full of opportunities to make business in a more dynamic, democratic, safe and cheaper way, opening the doors to those who have great ideas and are searching the means to start their own project, or invest on other ones.
How does the Ethereum blockchain work?
While Bitcoin brought up the decentralization of monetary transactions with its “proof-of-work” system of mining, Ethereum went beyond that with its Turing-complete virtual machine, also called Ethereum Virtual Machine (ETV).
Summing up, this protocol allowed people to do a lot more than transactions without the help of other institutions: they basically became the new governors of this world computer as they could create by themselves smart contracts and implement their own rules to make transactions, establish determined formats of monetary exchanges, state ownership, among other functions.
So, the traditional path to own an asset requires a lot of fees, lawyers and time, and at the end of the day, you’re trusting an external institution that is establishing its own rules.
With the EVM, you can trust now a machine instead of an institution. Thanks to this fact, the level of security becomes high because the machine is not going to do anything that you didn’t program it for. Consequently, the probabilities of having a fraud are low, you end up saving a lot of money, and you establish your own rules.
Basically, this is how Ethereum works. But also, this revolutionary and decentralized cryptographic system offers to you several services that you can find in their portal. However, we’re going to describe them here for you because we’re pretty gentle people and we want you to be comfortable. So, now that you know how it works, it is time to make the question:
What can you do, as a startup or an investor, with Ethereum?
Build your own applications: I think that this is precisely the basis of the Ethereum platform. For example, the Ethereum portal indicates that, building an application, you can “create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past”, etc.
Essentially, all the things that we normally do with other institutions, but with your own decentralized application, in which you don’t have to deal with trustless people, you have more freedom and the service is cheaper.
Of course, the development of these new applications might take you forward and make you build a creative project. Ethereum can provide you with a high-quality technology that will be the basis of your project while giving you freedom and security with its system of smart contracts.
Hold cryptocurrency: Actually, this is quite of the same thing that we already do with Bitcoin. With Ethereum, you can hold and exchange cryptocoins (not only ethers, we must mention). And… well, that’s it. Remember that Ethereum is, basically, an ameliorated version of Bitcoin, so what else did you expect that I was going to say in this point?
Create your own token and sell it on an ICO: With the Ethereum platform, you can develop your own cryptocoin and use the Ethereum wallet to make transactions with it.
If you have any project in mind but it is quite difficult to find investors, why not trying an ICO? This method of funding has been proved to be effective and give many profits.
Ethereum gives you the chance of making public a white paper in which you must explain in details what is the vision of your project, what you pretend to achieve with it, how long it’s going to take to develop it, etc., so that people can have an approach to your business plan and know if they’re interested or not in backing your project.
On the other hand, if the project doesn’t accomplish its objectives in the given lapse of time, the virtual machine is programmed to guarantee to the contributors the refund of their money.
Basically, both the startups and the investors win using with this system. It gives to startups an amazing platform with which begin their little business and fund money with a significant amount of credibility, and, precisely because of the credibility and security given by the platform, those backing a project can trust the machine and know that they’re not going to be the victims of a fraud.
Create a Democratic Autonomous Organization: After exploring the former functions, you might want to kick off your own organization. The decentralized system of Ethereum gives you the chance of building a more democratic management, where you can have closer interactions with its members due to the transparent voting process through which you can receive proposals from them.
Also, you can be sure that the machine will prevent your organization from any external malicious influence. As we said before in this article: now you set the rules, not the centralized institutions.
So, the new decentralized technology is here to change the way we make business. You can decide whether to stay in the past with the traditional institutions that will take a lot of money and time from you, or you can try innovating yourself and your project by using platforms such as Ethereum. The future of business is here, and not for nothing this platform has been so successful.