Ethereum takes this “beyond the paper metaphor” approach to getting databases to work together even further than bitcoin. Rather than replacing cash, Ethereum presents a new model, a fourth way. You push the data into Ethereum, it’s bound permanently in public storage (the “blockchain”). All the organizations that need to access that information — from your cousin to your government — can see it. Ethereum seeks to replace all the other places where you have to fill in forms to get computers to work together.
This is a fantastic concept. It’s basically a public contract platform that sits on top of Blockchain technology.
So basically Bitcoin is a currency that sits on top of Blockchain.
Ethereum goes further and abstracts the Bitcoin concept to general human (and even non-human) interaction, and does this through a programming platform.
Here are some things you could do with it:
- Use it to automatically paying rent
- Paying royalties
- Giving allowance on a regular basis
- Machines exchanging with each other
It’s a platform for validating transactions, in a transparent and distributed way, between any two (or more) parties.
Fascinating. Keep an eye on it.