Decentralization - how it will impact the world and Bitcoin. Part One
Everyone is excited about the applications of bitcoin the currency and a lot of the experimental alt coins blazing trails of innovation forward.
There are a few people, who have disappeared for weeks on end, suddenly coming back to society looking like a sleepless wizard straight from Lord of the rings… If you did not know them personally as intelligent well-spoken individuals prior to their sudden ‘madness’ you would assume they hit a ‘molly‘ and went cuckoo for cocoa puffs.
But when so many intelligent tech savvy individuals all band together to nail the same points home, some having more zeal than others. Surely there must be something in this string of coherent madness right? Let us take a quick moment to peek into three revolutionary projects which will assist us in spreading decentralization throughout the planet.
Most of the services we use have something in common: they are centralized. E.g. when when you deposit money at your bank, you trust them to be honest, secure and be independently audited. The same is true when you post pictures on Instagram, or an important file on Dropbox. History has over and over again that this centralized model is undoubtedly flawed, but has been a necessary evil we work with, since decentralized ‘trust-less’ operations have been both unprofitable and too complex to implement.
Applications built on Ethereum do not require their users to trust the developers with their personal information or funds. Ethereum not only addresses the issues described above, it also opens the door to whole new kinds of applications that have never been seen before.
Ethereum is a protocol that is open to all. Any programmer should be able to write smart contracts and Ethereum apps in languages they’re already familiar with. Programmers should also be able to implement the entire specification with relative ease, in order to minimize the influence that any specific individual or group could have on the protocol. The Ethereum protocol should be as simple as possible, and optimizations which add complexity should not be included unless they provide a very substantial benefit.Contracts are the main building blocks of Ethereum. The contract is a computer program that lives inside the distributed Ethereum network and has its own ether balance, memory and code. Every time you send a transaction to a contract, it executes its code, which can store data, send transactions and interact with other contracts.
Contracts are maintained by the network, without any central ownership or control. Contracts are written in languages instantly familiar to any programmer and powered by Ether, Ethereum’s cryptofuel. You can find out more in the Ethereum wiki and if you really want to dive into what this is all about check out the Ethereum White Paper