Ethereum

Ethereum was created by Vitalik Buterin in 2014, as an improvement upon Bitcoin's blockchain technology. It introduced smart contract functionality, which allowed developers to build decentralized applications (DApps) on top of the Ethereum blockchain. The Ethereum network went live in July 2015, and since then has become the second-largest cryptocurrency by market capitalization.

Ethereum's primary use case is to enable developers to build decentralized applications (dApps) that run on its blockchain. Unlike traditional apps that rely on centralized servers, dApps are distributed across a network of nodes, making them more secure, transparent, and resistant to censorship. This opens up a wide range of possibilities for developers, including decentralized finance (DeFi) applications, gaming platforms, and more. Additionally, Ethereum is programmable, meaning that developers can create custom tokens on top of the Ethereum network.

A couple of use cases we have seen.

1. Non-Fungible Tokens (NFTs): Ethereum's ERC-721 standard has made it possible for artists, musicians, and creators to sell their digital works as unique, one-of-a-kind assets.

2. Decentralized Finance (DeFi): Ethereum is the backbone of the DeFi ecosystem, enabling users to trade cryptocurrencies, lend and borrow money, and earn interest without intermediaries. The most popular DeFi protocol on Ethereum is Uniswap, with a daily trading volume of $1.5 billion.

3. Supply Chain Management: Ethereum can be used to create tamper-proof records of product origin, ownership, and movement, ensuring greater transparency and trust in the supply chain. This market is growing at incredible rates, with the global blockchain supply chain market expected to reach $9.6 billion by 2025, a CAGR of 80.2% from 2020 to 2025.

But what is unique?

Ethereum has several unique innovations that set it apart from other blockchain platforms. Ethereum's smart contract feature allows developers to automate the execution of agreements and transactions, without the need for intermediaries. In addition, Ethereum's Virtual Machine (EVM) allows developers to write smart contracts in a variety of programming languages, making it more accessible to developers with different backgrounds. Lastly, Ethereum's gas fee system ensures that transactions are processed efficiently and fairly, by incentivizing nodes to prioritize transactions with higher fees.

So where are the opportunities for startups?

There are a plethora of opportunities for startups with the most obvious being NFTs in gaming, virtual real estate, and identity verification. Alternatively, founders can build new DeFi protocols or create tools that enhance the user experience of existing ones. DeFi is still in its early stages, and there is a lot of room for innovation in areas such as lending, borrowing, and asset management.

Startups can create new solutions that leverage Ethereum's transparency and immutability to improve supply chain management and traceability. One example is the use of smart contracts to automate the verification of product origin and quality, reducing the need for intermediaries. Startups can also explore the integration of IoT devices with Ethereum to create more accurate and real-time supply chain data.

You see, Ethereum has a lot to offer. If you are just starting in the space or you’re a seasoned veteran, there is always more to learn and explore in this rapidly evolving space.

For more information, check out the Ethereum White Paper, subreddit, and official website.