Ethereum is the technology behind smart contracts. The power of Ethereum lies in its decentralized innovative way of running applications. It saves costs and simultaneously increases security. As a company renowned for building futuristic Ethereum applications and smart contracts, skalex assists enterprises in leveraging their business by implementing Ethereum technology.
Vitalik Buterin, the creator and co-founder of Ethereum, once described it this way:
“Ethereum does not have features, it just has a programming language.”
In other words, you can use Ethereum to build any kind of application or start any kind of smart contract.
The main idea behind Ethereum is decentralization. Ethereum applications don’t run on any one server or computer: they execute on the blockchain, which is distributed across the globe. Ethereum functions through a proof-of-work consensus, meaning that every computer on the network comes to an agreement about the transaction before it is approved.
Ethereum smart contracts have made it possible to create and manage assets — both tangible and intangible — securely, privately, and at a low cost. Its most exciting value-added feature is automation. Automating contracts means that third party intermediation is unnecessary, so contracts can run reliably without excess bureaucracy or mitigation.
All Ethereum applications and smart contracts run on a blockchain that is very difficult to change or tamper with. This means that user data is extremely secure against hacking or theft. Additionally, because it is decentralized, there’s no risk of service disruption in case a natural disaster, accident, or human error makes a server go offline. That’s a benefit of decentralization: there’s no single point of failure.
The Ethereum and Bitcoin blockchains share a number of positive features, such as transparency and strong security. Unlike Bitcoin, though, Ethereum is Turing-complete. This means that it can create programs, including smart contracts, capable of solving any reasonable computational problem. Turing-completeness allows Ethereum applications to implement sophisticated logic.