The synergies gained from building on Ethereum’s decentralized app ecosystem

When the first home telephones were being installed in the 1870s, the companies selling them had a problem: phones aren’t very useful if you can only call a few people. However, this challenge got easier and easier as the networks expanded, since every new customer’s presence in the phone book increased the overall value of the product as a communication tool. This concept — called a “network effect” — entered its renaissance during the tech boom, as platforms like Facebook and the Apple ecosystem rapidly secured huge market shares on the power of large userbases.


How does Ethereum work, anyway?

Odds are you’ve heard about the Ethereum blockchain, whether or not you know what it is. It’s been in the news a lot lately, including the cover of some major magazines, but reading those articles can be like gibberish if you don’t have a foundation for what exactly Ethereum is. So what is it? In essence, a public database that keeps a permanent record of digital transactions. Importantly, this database doesn’t require any central authority to maintain and secure it. Instead it operates as a “trustless” transactional system — a framework in which individuals can make peer-to-peer transactions without needing to trust a third party OR one another. Still confused? That’s where this post comes in. My aim is to explain how Ethereum functions at a technical level, without complex math or scary-looking formulas.

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