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When Bitcoin burst onto the scene init challenged preconceived notions about the limitations of transactions. Fast-forward 8 years, and another platform is dominating the headlines. Ethereum is an open-source platform that facilitates the development of next-generation decentralized applications.
It was conceptualized in by Vitalik Buterinwho at the time was conducting research within the Bitcoin community. Bitcoin opened the world to the possibilities of shared ledgers, and now Ethereum is expanding on that potential. However, these iterations failed to impact the tech and financial-services communities because they were limited to a few functionalities. The intent of Ethereum is to transcend those limitations by creating a blockchain protocol with its own native programming language, which enables any application to be written on top.
This structure supports all existing and future applications and lends itself to an environment of constant and immediate development innovation. Although Bitcoin birthed Ethereum, in the past year, Ethereum has eclipsed its predecessor in terms of future promise. Another facet that sets Ethereum apart from Bitcoin is the support Ethereum continues to receive from the financial and technological communities. Companies have recognized the immense power of blockchain technology and cryptocurrency to boost security and efficiency, and they are joining the party.
Institutions like Microsoft and JPMorgan have pledged their support to the development of Ethereum through the formation of the Enterprise Ethereum Alliance.
The purpose of the alliance is to ensure the potential of Ethereum is realized across industries. Companies involved in the alliance are working toward creating a standard, open-source version of Ethereum, which will serve as a blueprint for all adaptations.
JPMorgan is already working on implementing its own Ethereum-based system to facilitate the seamless transfer of funds between global JPMorgan branches. This will establish a new universal benchmark for information transactions. Although Ethereum has enormous potential to create a more secure and streamlined global transactional system, to concentrate on what is yet to come is to overlook the changes Ethereum is already enacting.
Early Ethereum adaptors are driving innovation through decentralization. Organizations and individuals are increasingly aware of impending threats to digital security. One company, KYC-Chainis tapping into Ethereum to help businesses safely onboard new customers, blending simple identification processes and know-your-customer regulations. KYC-Chain protects user data on the platform through a series of cryptographic protocols.
Business development has changed drastically over the past decade. Platforms like Kickstarter and GoFundMe have opened conversations and opportunities around business development.
Smart Contracts expand the ways in which individuals can contribute to development, while ensuring complete transparency and strict adherence to contract boundaries. Smart Contracts are a way of transporting anything of value — money, shares or data — without an intermediary, and Ethereum technology makes this possible.
Smart Contracts are immediate. Another benefit of Smart Contracts is that the rules and regulations associated with the contract are automatically enforced. Buterin and Ethereum supporters believe in complete decentralization; they envision a system that puts users in complete control and allows them to innovate in any direction. Ethereum can also help budding entrepreneurs build the right teams.
Ethereum takes the pain out of managing an organization and answering to shareholders, because all of those initiatives are automatically executed within the contract. Colony is one platform leveraging Ethereum to drive decentralized, global work organizations. Colony strips away organizational hierarchy and simplifies the management of a distributed workforce.
Based on principles of meritocracy, Colony encourages people to invest their time, unique expertise, feedback and ideas in global projects. The system, run on Ethereum, assesses users and the value they contribute to Colonies on the platform. Users are awarded tokens based on completed tasks and weighted value.
Automated cryptocurrency payments are facilitated through Stripe to ensure that all contributors are adequately compensated based on value. Colony envisions a democratized working future; one in which individuals are not limited by their location. Though it is still in beta, Colony is hopeful that its collaborative network will drive the future of workforce management. Ethereum eliminates intermediariesthus decreasing transactional fees and increasing the speed and efficiency of transactions.
Every industry stands to benefit from improvements in efficiency and reductions in cost, but this innovation is especially exciting for organizations in developing economies. Many people in developing economies are subject to complicated remittance processes, exorbitant online payment fees and high currency exchanges.
Everex, a FinTech company, is leveraging Ethereum to help people in developing nations with limited access to banks and global financial systems. The actualization of Ethereum is nowhere near complete; however, the technology has already managed to set in motion decentralized solutions that were once deemed impossible. The mounting support for the development of Ethereum and rapid adoption among emerging organizations are changing how we think about digital safety, crowdfunding, workforce management and economic development.
Deep Patel is a serial entrepreneur, marketer and the author of A Paperboy's Fable: The 11 Principles of Success. More posts by this contributor UPS bets on blockchain as the future of the trillion-dollar shipping industry Business in the age of Ethereum.
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