When asked to explain what Ethereum is, I normally try to give a simple explanation without having to go into the technical details, I say the Ethereum Block-chain Network is ultimately a online computer.
However Dr. Gavin Wood has explained Ethereum during DEVCON1 and I believe he does a tremendous job in simplifying what Ethereum is. Enjoy.
So What is Ethereum?
It is meant to be a cryptocurrency that is backed by computer power, anyone who holds Ether essential own computing power. The idea of a World Computer is what Ethereum is trying to sell. It is a computer that anyone in the world can use. Essentially it is blockchain-based platform where any program can be run that has been uploaded into the network.
It’s goal is to allow people around the world to have cheaper and efficient access to computing power that essentially will have no down-time, no-fuss about storage, and is decentralized due to its blockchain-based platform which means it is very secure.
What is the potential of Ethereum?
The potential of ethereum is immense, the range of possibilities can change how the internet works. Ethereum themselves state that it is “how the Internet was supposed to work”, allowing applications to “run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.”
Of course, nothing in this world will be 100% certain in succeeding, but Ethereum stands a pretty good fighting chance based on the logical direction of technological growth. People who invested in Bitcoin and held them until the prices took a giant leap got a great Return on Investment (ROI); Ethereum has the potential to succeed Bitcoin as the next big thing on the block.