• How Its Different From Bitcoin!
• What is Ether?
• Pros & Cons
• Why We Need?
• Pros & Cons
“The Blockchain is an incorruptible digital ledger of
economic transactions that can be programmed to
record not just financial transactions but virtually
everything of value.”
Why Need Blockchain?
Trust Shifting Decentralization Automation
Machine To Machine
Control Self System &
No Double Spending
• Ethereum was proposed in late 2013 by Vitalik Buterin. At its
simplest, Ethereum is an open software platform based on
Blockchain technology that enables developers to build and deploy
• Ethereum’s token, “Ether,” works in a similar manner to Bitcoin. You
can buy and sell it, with confirmations for transactions handled over
• It’s entirely decentralized, with no banks providing the
confirmations needed to validate transactions. Instead, “miners”
around the world fulfill that role
Bitcoin vs Ethereum
• Bitcoin was the first true
cryptocurrency and has been in
circulation since 2009.
• Bitcoin take 10 minutes to 1
hour to settle transactions.
• The reward for mining Bitcoin
halves about every four years
and it is currently valued at 12.5
• Ethereum is a far more recent
development, going live in 2015.
• Ethereum is certainly faster than
with transactions typically settling
in 12 seconds.
• Ethereum rewards miners based
on its proof-of-work algorithm
called Ethash, with 5 ether given
for each block.
What is Ether?
• Like bitcoin, ether is a digital bearer asset. Just like cash, it doesn't
require a third party to process or approve a transaction. But
instead of operating as a digital currency or payment, Ether seeks to
provide “Fuel" for the decentralized apps on the network.
• ‘Ether' has sometimes been called ‘Digital Oil', and taking this
analogy further, Ethereum transaction fees are calculated based on
how much 'gas' the action requires.
Pros & Cons
• Corruption & tamper proof
• Zero downtime
• Smart contracts written by humans
• Code bugs
• Attack or Exploitation
• Smart contracts were first proposed by Nick Szabo, who coined the
term, in 1994. Proponents of smart contracts claim that many kinds
of contractual clauses may be made partially or fully self-executing,
self-enforcing, or both.
• A smart contract is a computer protocol intended to digitally
facilitate, verify, or enforce the negotiation or performance of
a contract. Smart contracts allow the performance of credible
transactions without third parties. These transactions are trackable
Why We Need?
• Smart contracts are for Blockchain implemented with transaction
• Smart contracts will define contracts terms Digitally .
• Smart contracts provide a description of responsibilities.
• Smart contracts bind parties to their duties.
• Smart contracts can establish a time frame for duties.
• Smart contracts provide recourse when the relationship falters.
Pros & Cons
• Economy and speed
• Human factor
• Uncertain legal status
• Implementation costs
Contracts provide a description of responsibilities. Rather than suffer through the confusion of wondering what each party’s responsibilities are, you’re better to have everything in writing. This will help avoid confusion or disagreement. Contracts bind parties to their duties. It is incredibly disruptive if one party attempts to back out of an agreement. A contract will bind the parties to the previously defined description of duties eliminating this problem. Contracts can establish a time frame for duties. If you need work performed and performed within a certain time frame a contract binds the party to that time frame. As a consultant, you might want to require the other party to provide adequate and timely access to key personnel, for example. Contracts can secure payment. No one likes to be stiffed for work performed and a binding contract provides a written legal document establishing an agreement to be paid for services rendered. Contracts provide recourse when the relationship falters. If the relationship between the contracted parties deteriorates, a contract outlines the previously agreed upon steps required for dissolving the relationship without punitive measures.
Smart contracts provide: Security The smart contract is encrypted and distributed among nodes. This guarantees that it will not be lost or changed without your permission. Economy and speed Most processes are automated, and most intermediaries are eliminated. Standardization There is a wide range of different types of smart contracts nowadays. You can choose one and change it according to your needs.
Here are some of the issues smart contracts might have: Human factor The code is written by people, and they can make mistakes. If the smart contract is in the Blockchain, it couldn’t be changed. A good example of the human error is The DAO. Developers’ mistakes in the code were costly for the users and the company - some hackers exploited errors and stole about $60 mln. Uncertain legal status Currently, smart contracts are not regulated by any government. So there is a potential issue if governmental institutions decide to make a legislative framework for smart contracts. Implementation costs Smart contracts cannot be performed without programming. It is essential to have an experienced coder on the staff to make fail-proof smart contracts and adopt the internal structure of the company for Blockchain technology.