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> which massively expanded the utility of the blockchain. I have little to no crypto experience or knowledge. In what way does this expand the utility of the c
by hhh 5y ago
> which massively expanded the utility of the blockchain.
I have little to no crypto experience or knowledge. In what way does this expand the utility of the chain, and what problems does this allow to be solved?
What are the pros/cons of using this over something else?
- jrm4 5y agoA way to look at it: "Blockchains" are just large distributed immutable databases, Bitcoin being the first working proof of concept to be a "public ledger," -- but pretty much only for "money." Ethereum (really, the ERC-20 ethereum blockchain) is designed to not just be a "money" database, but a "general purpose" database. So you could theoretically build anything on it. One major use is "other coins," but you can do e.g. lotteries, NFTs, other forms of finance, game tokens -- anything where a publicly viewable/auditable database may be of some use. And also, like other programming things, lots of footguns. :)
- sjtindell 5y agoRather than just storing a ledger of transactions in a decentralized manner (already a huge innovation), Ethereum allowed the execution of arbitrary code by the distributed system. Smart contracts can be thought of for the uninitiated like event-based lambdas that are immutable, publicly visible, and you don’t have to pay for the compute or storage (the user does via fees per usage). One cool use case for this is a decentralized exchange - an exchange wherein no centralized party controls the prices or flows. Another is flash loans.