Blog_Banner_Asset
    Homebreadcumb forward arrow iconBlogbreadcumb forward arrow iconBlockchain Technologybreadcumb forward arrow iconWhat is Ethereum Blockchain? Function, Utilities & More

What is Ethereum Blockchain? Function, Utilities & More

Last updated:
28th Aug, 2020
Views
Read Time
6 Mins
share image icon
In this article
Chevron in toc
View All
What is Ethereum Blockchain? Function, Utilities & More

Introduction

The release of Bitcoin marked Blockchain’s revolution, but there are a few latecomers in the domain, such as Ethereum, who have got the same amount of traction, in fact, more. Initially released in 2015, Ethereum Blockchain is an open-source, blockchain-based, decentralized platform. Since its initial release, Ethereum has achieved several milestones. One of the recent big achievements of the platform is the partnership between Microsoft and ConsenSys. The partnership brings Ethereum Blockchain as a Service (EBaaS) to businesses and developers on Microsoft Azure.

Check out our free courses to get an edge over the competition  

Learn Online Software Engineer Programs from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career.

How is Ethereum Blockchain Different from Bitcoin?

Despite being similar to Bitcoin at its core, Ethereum has way more flexibility and applications to offer. Bitcoin or cryptocurrency transactions is just one of the many applications of Blockchain technology. This is where Ethereum Blockchain surpasses Bitcoin. Ethereum has a different objective than just allowing cryptocurrency transactions. Apart from digital cryptocurrency transactions, Ethereum also allows creating smart contracts and decentralized applications (DApps), the network’s two USPs.

Ads of upGrad blog

Instead of using Bitcoin, Ethereum has its digital currencies, Ether and Gas, that fund the platform’s maintenance and all its applications. Another key difference between the two Blockchain networks is that Bitcoin is limited to 21,000,000 digital coins, whereas Ethereum has no limit on its numbers.

upGrad’s Exclusive Software Development Webinar for you –

SAAS Business – What is So Different?

 

Check out upGrad’s Advanced Certification in DevOps

Read: How to make Career in Blockchain 

Explore Our Software Development Free Courses

How Does the Ethereum Network Work?

Ethereum network works similarly to any other Blockchain network. Every new transaction is recorded and then examined by different nodes known as miners. These miners execute the program code on their computer to update the transaction in the decentralized ledger. Miners are awarded 3 Ether for every code they execute or every transaction they add to the chain. The result of each miner’s code is added to the consensus, which is then examined to authenticate the last transaction for smooth transactions throughout the network.

Check out upGrad’s Full Stack Development Bootcamp (JS/MERN) 

What are the Utilities of Ethereum Blockchain?

Ethereum Blockchain has many applications to offer apart from cryptocurrency transactions, some of them are:

1. Smart Contracts

Smart contracts in Blockchain are a collection of programmed codes and protocols that automatically enforces certain agreements made in the contracts. The codes of smart contracts function as the rules that all the parties involved have to abide by. When a single or all the conditions are met, the contract automatically triggers the following action set and agreed upon by the developers. These contracts possess all Blockchain technology characteristics, including security, trust, autonomy, and efficiency. 

While almost every Blockchain network allows creating smart contracts, they are very limited in terms of flexibility. Ethereum allows businesses to create nearly any number of smart contracts they want. Smart contracts on the Ethereum Blockchain platform are fueled by gas. Whenever a smart contract is executed on the platform, a small amount of gas is transferred to the miners.

Ethereum Blockchain’s smart contracts have multiple applications, such as banking, real estate, voting, and construction. For instance, Ethereum’s smart contracts can automate wages to labourers based on their working hours.

Explore our Popular Software Engineering Courses

2. DApps

Another application of Ethereum Blockchain is Decentralized Applications (DApps) development. The decentralized platform allows businesses and developers to develop apps accessible from anywhere on the Ethereum network. DApps are open-source applications that incentivize miners by giving them a small cryptography token for every mining.

The partnership between Microsoft and ConsenSys has created an even bigger opportunity for developers who are using Ethereum to build DApps. The partnership has brought in the concept of “Ethereum Blockchain as a Service” (EBaaS). EBaaS provides developers with a cloud-based blockchain environment with a single click.

Since these DApps are decentralized, one of the biggest advantages of them is that they do not undergo downtime and cannot be shutdown. They also enable faster payment and reliable data records.

Must Read: What is Blockchain & its Architecture

In-Demand Software Development Skills

Decentralized Autonomous Organizations

Ads of upGrad blog

Decentralized Autonomous Organizations (DAOs) are completely decentralized, and autonomous organizations operate based on smart contracts. With its complete flexibility over creating smart contracts, Ethereum becomes the perfect platform for DAOs. DAOs don’t have a single owner; they are owned by every person who has a token for the organization.

Also Read: Best Ethereum Wallet

Read our Popular Articles related to Software Development

Concluding

Ethereum Blockchain has many more applications that are worth noting. The careers in the Blockchain field are rising as it has changed the landscape of technology. If you are interested in pursuing a Blockchain developer’s career, you can check upGrad’s Advanced certificate program in blockchain technology.

Profile

Mayank Sahu

Blog Author
Mayank Sahu is the Program Marketing Manager with upGrad for all emerging technology vertical. His past experience is in analytics industry extensively in healthcare Domain. Mayank has completed his Graduation from IIT Delhi.
Get Free Consultation

Selectcaret down icon
Select Area of interestcaret down icon
Select Work Experiencecaret down icon
By clicking 'Submit' you Agree to  
UpGrad's Terms & Conditions

Our Popular Blockchain Course

Frequently Asked Questions (FAQs)

1What is the difference between Ether and Gas?

Although both of them are digital currencies of the Ethereum blockchain, they have considerable differences. Ether is basically a fuel that drives transactions on the Ethereum network. It is generated as a reward to the miners for adding blocks to the blockchain in a proof-of-work system. In simple words, it is a digital asset bearer that does not require the approval of a third party to facilitate transactions. Gas is a separate unit introduced solely to compensate for the amount of computational effort required in executing operations on the Ethereum network. It allows for a differentiation between the actual valuation of Ethereum and the computational cost of using Ethereum's Virtual Machine(EVM).

2What are Ethereum killers?

Ethereum killers, in simple terms, are the forthcoming rivals of the Ethereum blockchain. They aim to capitalize on the shortcomings of Ethereum. These third-generation blockchains offer more decentralization, low transaction fees, energy-efficient network, and higher transaction speed. Some of the well-known Ethereum killers are Cardano, Solana, Binance Smart Chains, Polkadot, Zcash, Avalanche, etc. These cryptocurrencies have attracted investors’ attention and have evolved exponentially in the past few years but whether they will be able to dethrone Ether completely or not is a point of debate.

3What is Ethereum 2.0 and when is it getting released?

Ethereum 2.0 is basically an upgraded and better version of the existing Ethereum blockchain being launched in an attempt to address the issues prominent in the current version. The major change in the newer version will be the transfer to the proof-of-stake mechanism which will make the network more secure and scalable. The capacity of transactions is also expected to see a major increase from 15 transactions per second to tens of thousands of transactions per second. Ethereum 2.0 is being released in three phases, namely, Phase 0 which was launched in December 2020, Phase 1 is expected to be launched in the second quarter of 2022, and Phase 2 in 2023.

Explore Free Courses

Suggested Blogs

Top 10 Interesting Blockchain Project Ideas for Beginners/Students [2024]
180694
Summary: In this Article, you will learn top 10 interesting blockchain project Ideas for beginners. Trusted Crowdfunding Platform Using a Smart Cont
Read More

by upGrad

18 May 2024

Prerequisites to Learn Blockchain Technology: It’s Not What You Think It Is
54970
There has been a massive development in the field of Blockchain technology in the last decade. Many people and companies came to know about Blockchain
Read More

by Mayank Sahu

16 May 2024

Blockchain vs Cloud Computing: Difference Between Blockchain and Cloud Computing
13399
Introduction Cloud computing and blockchain technology are the two on-demand technologies that are booming in the modern market and are being used by
Read More

by Mayank Sahu

25 Feb 2024

Top 12 Highest Paying Blockchain Jobs in India [A Complete Report]
901455
Blockchain is an emerging job skill in the IT industry. Technological advancements are gradually bringing this distributed ledger technology to the ma
Read More

by Mayank Sahu

19 Feb 2024

Skills Needed to Become a Blockchain Developer
54616
Blockchain development is one of the fastest-growing sectors. Companies are looking for blockchain developers to make new implementations, advance the
Read More

by Mayank Sahu

Blockchain Developer Salary in India 2024 [For Freshers & Experienced]
903494
The Blockchain Era is has arrived, and it is now. Enterprises across various sectors of the industry are warming up to the concept of the decentralize
Read More

by upGrad

11 Feb 2024

Blockchain Applications in Supply Chain
5772
The distributed-nature technology of Blockchain has disrupted many industries, with its uses and blockchain applications in supply chain leading to in
Read More

by Radhika Maloo

28 Aug 2023

Applications of Blockchain in Healthcare Industry
6695
After taking the finance and business sector by storm, Blockchain applications in healthcare are now all set to radicalize the healthcare industry. Ev
Read More

by Shubham Chakraborty

23 Aug 2023

What is Ripple Blockchain? Everything You Need to Know in 2024
7332
Ripple is a popular name in the tech industry. And Ripple blockchain has created a lot of buzzes. We all know how blockchain is transforming the indus
Read More

by Mayank Sahu

21 Aug 2023

Schedule 1:1 free counsellingTalk to Career Expert
icon
footer sticky close icon