Security

The block chain system has an inbuilt trust mechanism that is based on a system of mutual consensus.

Distributed

The block chain technology promotes interaction between two unknown parties without the need for a central intermediary.

Integrity

On the block chain platform, participants can act with integrity and expect other parties to act with integrity too.

Transparent

Block Chain promotes utmost transparency and good faith. No one can hide, frame or alter any kind of information.

Value

On the block chain value is awarded to parties on the basis of performance.

Privacy

On the block chain an individual will have the legitimate right to control and share private data.

Rights Preserved

Ownership rights to any kind of property; tangible or intangible can be protected and enforced on the block chain.

Inclusion

The block chain system can include billions of people who are
alienated from any sort of access to financial services.

How it Works

Ethereum and Smart Contracts

Based on distributed network architecture, the ethereum block chain enables smart contracts between two contracting parties. It is based on self-enforcing and self-executing contracts, irrespective of any mediating parties and regulatory authorities. It creates an irreversible contract once a consensus is reached eliminating the risk of non-performance. It creates a system which is immune to censorship, collusion, counter-party risk and fraudulent practices, adding a level of trust which cannot be breached.
The Ethereum block chain makes use of nodes or computers with block chain installed in it and a network to communicate between the nodes. The network could be established over TCP/IP protocol or any other form of networks. The simple mechanism that the block chain follows is that it communicates all smart contract across multiple nodes and achieves a joint consensus based on a logically structured algorithm. Smart contracts are enforced with a help of a private key for encoding the message and a public key for decoding the message.
Block chains have widespread applicability. It can be used to own or lease property, make payments, and involve in any form of contractual agreements involving physical goods or ideas.

Case Study

A faster,smarter and secure way to contracts

Imagine a world, where you could transact with anyone you wanted to, without the need for any banking intermediaries. What if there were no risks or fear of fraud on your next transaction? Or what if you could control the amount of information you give out about yourself to advertisers and get paid for the same. These are the exact questions technological pundits have been asking for a very long time.

Fortunately, with the pervasive use of the internet, block chain technology has emerged which allows individuals to achieve all the above scenarios. Ethereum is also based on the block chain technology. It is safe, transparent and reliable means of transacting with any third party without worrying about who they are or what they do. Simply look up their reputation score, agree to the terms of the contract and you are good to go. The system can be set up in no time and anyone with a computer can access it. They can buy/sell or lease without any hassles. Even contracts can be self-executed and enforced based on the agreed terms.

Ethereum smart contracts follow a consensus mechanism based on a distributed architecture where one computer engages in the contract with the other and the system broadcasts the message to other computers in the area who are connected to the network. So the transaction message is stored on all computers based on a time stamp and cryptographic hash which makes the transaction legitimate. No one can change or remove or needs to vouch for any information on the block chain.

So What's Next ?

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