Before understanding Ethereum, you need to understand the working logic of the internet.
How Ethereum Works?
Today, most of our personal data, passwords and financial information are stored on cloud servers and computers of companies such as Amazon, Facebook or Google. This article you are reading now is also registered on a server.
This is very convenient, as the companies we mentioned above assign expert tasks to store and secure this data.
However, besides these facilities, there are also security vulnerabilities. We have already learned that a hacker or a government can gain access to your files without your knowledge, steal your sensitive information, infiltrate or alter your files by influencing or attacking third parties.
What Is Ethereum’s Purpose?
Brian Behlendorf, the founder of Apache Web Server, called this centralized design “the first sin” of the internet, perhaps to the extreme. Some who think like Behlendorphs argued that the internet was created to be decentralized.
Technologies such as blockchain serve this purpose.
Ethereum is one of the newcomers to these technologies.
While the purpose of Bitcoin is to eliminate PayPal and internet banking; Ethereum’s goal is to eliminate third-party systems that store data, transaction mortgages and track complex financial instruments using Blockchain technology.
“What is Ethereum = World Computer”
In short, Ethereum wants to become a “World Computer” by decentralizing the current client-server model and democratizing it according to some.
In Ethereum, servers and clouds are replaced by thousands of ‘nodes’ run by volunteers around the world.
The dream is for Ethereum to deliver this functionality to people all over the world.
Consider the little symbols you see while browsing through the app store. There are hundreds of applications in the market related to banking, messaging. All of these applications rely on a company to store your credit card information, transaction history, and other personal information on servers usually managed by third parties.
Which apps you choose are also controlled by third parties because Apple and Google highlight certain apps.
Examples of these are online file services such as Evernote or Google Docs.
If everything goes as planned, Ethereum will return control of data on such services to its owners.
The main idea is: One company, etc. existence will not be able to take control of your files, or ban the application in its head and cause you to be unable to access your files for a while. So it’s not just a different existence that users can make changes.
Theoretically, it combines the ability of people to control their information with easy-to-access information that we are accustomed to in today’s digital age. Whenever you make changes to the file, whenever you add or leave a note, every ‘node’ on the network will make these changes with you.
It is worth noting that there are also those who are suspicious of this idea.
Although applications seem possible as an idea, it is unclear which blockchain applications will be useful, secure, scalable, and whether these applications will be as convenient as the applications we use today.