Decrypting Ethereum's Blockchain Model

About Blockchain Model

A Blockchain is a digital database or ledger that is distributed among the nodes of a peer-to-peer network. In layman's language - A Blockchain is a decentralized public ledger that keeps track of transactions across numerous computers. Might you know the renowned enterprises like Ethereum, Quorum, Maersk they all follow a typically designed Blockchain model.

How Blockchain technology benefits its consumers?

Supply chain visibility : It enables shippers to improve customer service and cost controls through management of inventory in motion, proactive status updates, limiting disruptions and risk mitigation.
Product Transparency : It ensures the provision of information on products and services pricing and timelines on a realistic delivery of a service or product.
Warranty Management : Warranty management streamlines processes and allows companies to save time and money on overhead, while also improving the way in which information is handled.
Product Authentication : It reduces the risk of using counterfeit or substandard components that may compromise the overall safety and reliability of the end product.

How Blockchain technology benefit Businesses?

Blockchain technology facilitate businesses with the undermentioned functions that arec self explanatory:-

Decentralised Structure
Improved Security and Visibility
Reduced costs
Innovation

Various enterprises use their typically designed Blockchain model, here we will discuss in detail the Blockchain model adopted by ETHEREUM.

About Ethereum?

Ethereum is a network of computers all over the world that follow a set of rules called the Ethereum protocol. The Ethereum network acts as the foundation for communities, applications, organizations and digital assets that anyone can build and use.

Ethereum was conceived in 2013 by programmer Vitalik Buterin.Additional founders of Ethereum included Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin. In 2014, development work began and was crowdfunded, and the network went live on 30 July 2015.

Business Model of Ethereum

Ethereum's business model centers around decentralized blockchain technology. It generates revenue through Etheruem gas fees paid by users for transaction processing and smart contract execution. Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. Ethereum's founders and early contributors hold Ether, the native cryptocurrency, potentially benefiting from its value growth. The Ethereum Foundation supports the ecosystem through funding and development. Enterprises seek Ethereum-based solutions, and Layer 2 scaling solutions alleviate congestion. Ethereum thrives in DeFi and NFT sectors, boosting activity. Its open-source, decentralized nature fosters innovation and partnerships, making it a leading platform for decentralized applications and a dynamic player in the blockchain industry.

FUNCTIONS OF ETHEREUM

Banking for Everyone : Not everyone has access to financial services. But all you need to access Ethereum and the lending, borrowing and savings products built on it is an internet connection.
An Open Internet : Anyone can interact with Ethereum network or build applications on it. This allows you to control your own assets and identity, instead of them being controlled by a few mega-corporations.
A peer-to-peer network : Ethereum allows you to coordinate, make agreements or transfer digital assets directly with other people. You don't need to rely on intermediaries.
Censorship-resistant : No government or company has control over Ethereum. Decentralization makes it nearly impossible for anyone to stop you from receiving payments or using services on Ethereum.
Commerce guarantees : Customers have a secure, built-in guarantee that funds will only change hands if you provide what was agreed. Likewise, developers can have certainty that the rules won't change on them.
Composable products : All apps are built on the same blockchain with a shared global state, meaning they can build off each other (like Lego bricks). This allows for better products and experiences and assurances that no-one can remove any tools apps rely upon.

Ethereum’s Uniqueness

Ethereum uses an open-source blockchain that is known for its smart contracts functionality, and which serves as the basis for the cryptocurrency ether (ETH).

Important Figures of Ethereum

Projects built on Ethereum : 4k+
Accounts (wallets) with an ETH balance : 96M+
Smart contracts on Ethereum : 53.3M+
Value secured on Ethereum : $410B
Creator earnings on Ethereum in 2021 : $3.5B
Number of transactions today : 1.007M

Growth & Return in Ethereum

Ethereum has seen impressive growth in its price and adoption over the years, offering the potential for substantial returns to investors. However, it's crucial to acknowledge the volatility and risks associated with the cryptocurrency market. Investment decisions should be made carefully, considering your financial goals and risk tolerance. Additionally, staying informed about the latest developments and market trends is essential when investing in Ethereum.

The following chart represents the recent trend of Ethereum's growth.

Conclusion

Ethereum's blockchain model has redefined the possibilities of blockchain technology. By enabling the creation of smart contracts and DApps, it has become a breeding ground for innovation, transforming industries and the way we interact digitally. As Ethereum continues to evolve, it's essential to keep an eye on its advancements and the impact they have on the decentralized future of finance, technology, and beyond.