In case you were not paying attention In May 2015 when I wrote Ethereum: A Platform for Decentralized Applications.
Let me refresh your memory about Ethereum.
A platform that enables the creation of apps or “dapps” to run on the whole internet that uses blockchain technology to automate self-executing self-enforcing agreements between parties to a contract.
A platform of DAPPS.
A platform that uses blockchain technology.
A platform that automates self-executing self-enforcing agreements.
A platform that automates between the parties of the contract.
A building will store and execute any transaction with its own data.
– Duke Long May 2015.
So, what’s happened to Ethereum and Bitcoin since May of 2015?
Bitcoin went from $234.31 to $2655.00. Ethereum went from not existing to $368.10 as of today.
Do you understand that at all? You understand numbers right? By the way, the market cap on Ethereum is $35,133,774,027 that’s Billions with a B. Source: Coin Market Cap.
Do I have your attention at all?
Do you understand what’s coming? I keep asking!
Let me rephrase that, do you understand what has been created in a matter of a few months?
Recently I attended the Token Summit to gain more in-depth knowledge into Ethereum and Tokens.
Ethereum wants to create an ecosystem where everything works together seamlessly as part of its vision for a ‘world computer’ – and that includes the tokens required to power it.
Launched in 2014 Ethereum was designed to make it possible for anyone to code nearly any type of app and deploy that on a blockchain. Part of what became obvious is that they needed a standard application so nearly 18 months ago, the ERC-20 token standard was born. By defining a common set of rules for Ethereum-based tokens to adhere to, ERC-20 allows developers of wallets, exchanges and other smart contracts, to know in advance how any new token based on the standard will behave.
Think about this for a second. A standard was created and adopted in what amount of time with what value to the community.
What the fuck are we doing again? Letting the rest of the world show us how that’s what.
( A quick side. They are going to be better at real estate transactions than we are and that’s just for starters.) (Hell, they are better than we are now, they are just busy doing more important shit right now.)
By creating the ERC-20 standard they can design their apps to work with tokens out of the box, without having to reinvent the wheel each time a new token system comes along.
As a result, almost all of the major tokens on the Ethereum blockchain today, including those sold in the recent surge of Ethereum-based initial coin offerings (ICOs), are ERC-20 compliant.
It’s simple and fucking brilliant.
Let me step back here and get basic to help you realize the importance of this development.
Before going deeper, it’s important to spell out what a token actually is and how it differs from ether, the native currency driving the Ethereum blockchain.
As they relate to the Ethereum network, tokens are digital assets that can represent anything from loyalty points to vouchers and IOUs to actual objects in the physical world. Tokens can also be tools, such as in-game items, for interacting with other smart contracts.
A token is nothing more than a smart contract running on top of the Ethereum blockchain. It is a set of code (functions) with an associated database. The code describes the behavior of the token, and the database is basically a table with rows and columns tracking who owns how many tokens.
If a user or another smart contract within Ethereum sends a message to that token’s contract in the form of a ‘transaction,’ the code updates its database.
How does this actually work?
Let’s say ABC firm sends a message to a token’s contract to transfer funds from ABC firm to XYX firm.
-First, the token’s contract checks that the message was signed by ABC and that ABC has enough funds to cover the payment.
-Then, it moves funds from ABC to XYZ’s account in the database.
-Finally, it sends a response, letting the application know the transaction was a success.
Remember, ether is hard coded into the Ethereum blockchain. It is sold and traded as a cryptocurrency, and it also powers the Ethereum network by allowing users to pay for smart contract transaction fees. All computations on the Ethereum network have a ‘gas’ cost. In other words, you pay for security. Cryptosecurity.
When you send tokens to an exchange, for example, you pay for that transaction (in this case, a request to the token’s contract to update its database) in ether. This payment is then collected by a miner who confirms the transaction in a block, which then gets added to the blockchain.
Early on in Ethereum’s history, standards were part of the overall plan to create a user-friendly and broadly accessible system. But like all standards, ERC-20 took the time to evolve over a series of long discussions and careful considerations. In other words, they figured it the fuck out like adults! Did I mention this was started by teenagers and coders!
It seems pretty obvious that Etherum has figured out to create a secure database with a working standard application to transact.
Guess what’s next.
A real estate database that will do the same thing.
But of course, you are sure that can’t happen because to create a database you need data.
It’s already being done now.
It took some teenagers and coders to show us how to do it.
It sure as hell was never going to be us.
Oh, and YOU can’t own it!
#CRE will never be beholden again!
Smart Contracts. The One Simple Step That Kills The DarkStar Forever.
+1 You can’t buy, bully, sue, or smile your way in.
+1+1 How fucking democratic and beautiful is that?