Ethereum Explained Simply

Ethereum is based on innovative blockchain technology, similar to Bitcoin, but offers key advantages and differences that make it the preferred choice for smart contracts and decentralized applications (dApps). Ethereum allows developers to create decentralized applications (dApps) and self-executing contracts known as smart contracts. This enables complex business processes and contracts to be securely and transparently represented on the blockchain. The Ethereum ecosystem has its own coin called Ether (ETH), which serves as the currency for the decentralized dApps and smart contracts on the platform. ETH is traded worldwide on various cryptocurrency exchanges. Since ETH solves real-world problems and can be applied practically, its value is not solely based on speculation. However, the value of ETH is still measured in traditional currencies. The Ethereum price in Swiss Francs (CHF) reflects the current value of the cryptocurrency on the Swiss market. Although Ethereum prices can also be tracked in Euros and Dollars globally, ETH is still predominantly valued in US Dollars (USD).

Smart Contracts are self-executing contracts where the terms are directly written into code. They have the potential to revolutionize how we make agreements and conduct transactions.

For example, an artist wants to sell their artwork using blockchain technology and ensure fair compensation. They can create an Ethereum Smart Contract that defines the artwork's sale price and specifies how payment should be made. The Smart Contract can also be programmed to automatically return a percentage of the sale proceeds to the artist if the artwork is resold later. This represents a revolution in the art market, as artists previously only earned from the initial sale of their work. Art often appreciates over time, and artists missed out on profits from subsequent sales. However, with a Smart Contract, they can earn from every resale, provided this is agreed upon in the contract. For instance, even the descendants of deceased artists like Salvador Dalí or Vincent Van Gogh could benefit from the resale of their artworks, provided they have access to the private key.

✅Decentralized Finance: Ethereum enables a variety of decentralized financial applications such as loans, insurance, decentralized exchanges, and investment funds. A prime example of such a decentralized finance application on Ethereum is Uniswap, a platform for trading cryptocurrencies. On Uniswap, users can trade tokens directly from their Ethereum wallet, significantly easing access and use.

✅Identity management: Thanks to Ethereum, users can verify and own their identity on the blockchain, eliminating reliance on centralized identity management systems. An outstanding example of identity management on Ethereum is uPort, a Self-Sovereign Identity (SSI) platform. It allows users to manage their identity securely and decentralised on the Ethereum blockchain, setting new standards for security and privacy.

✅Ownership in Gaming: Ethereum enables the development of decentralized games that give users full control over their in-game assets and ownership. A notable example of a decentralized game on Ethereum is Axie Infinity. Here, users can breed digital monsters and engage them in exciting battles. What's special is that players own their digital monsters and can even trade them on the Ethereum marketplace, opening up a whole new dimension of gaming and ownership.

✅Transparency in Logistics: To reduce fraud and improve transparency in supply chains, Ethereum offers the ability to maintain a transparent record of all transactions. A notable example is the company Ambrosus, which has developed a blockchain solution for monitoring food supply chains. By utilizing the Ethereum blockchain, all transactions are recorded to ensure complete traceability from origin to end consumer.

✅Decentralized Autonomous Organizations (DAOs): The use of Ethereum also extends to the creation of DAOs (Decentralized Autonomous Organizations), which operate like companies and make decisions based on member votes. A prime example of this is Aragon, a platform that enables users to create DAOs. Members can vote on and make decisions regarding the direction and management of their decentralized organization.