DAO Based on Ethereum
Blockchain technology is now considered by many people as a perfect way to reform the existing financial system. Despite the fact that the cases of using the distributed ledger technology in the monetary system are already known, its possibilities are not limited by the making payments and bills only. Ethereum community has been able to suggest the developers a new conception, built on blockchain technology – Decentralized Autonomous Organization, or DAO.
The advantage of Ethereum platform is the possibility of using automated smart-contracts. The smart-contract can be used as an agreement between two or more sides, it checks all the provided data and decides whether they comply with the conditions of implementation. Unlike traditional contracts, smart-contracts do not need the human interference after their creation.
However, the main drawback of smart contracts is the fact that they, as traditional agreements, are created by people. It means they are not fully autonomous. One of the ways to solve this problem is the creation of the new type organization, decentralized and democratic in the same type, based on blockchain. However, this doesn’t mean that this organization is incapable of providing the same set of the financial instruments, offered by traditional institutions.
One could hardly imagine such organization without the centralized governing, but the Ethereum programmers have thought up the way to realize this conception. Eventually, there is no sense speaking about the decentralized system, if it has the single governing center. Decentralized autonomous organization on the basis of Ethereum blockchain fulfills exactly the functions of such center, however not in a way we used to. Every delegated member has the right to offer suggestions regarding the realization of transactions for agreements or moving of Ether. Other community members have the right to accept or reject the transaction. After the registration of the necessary number of confirmations, the suggestion is considered accepted.
Everyone who ever dreamed of creating his own company or organization, can fulfill the dream using Ethereum. Taking part in creating DAO objects is the great way to shake the old-fashioned world of traditional financial instruments.
Ethereum to Enter Japanese Market
Ethereum entered the Japanese crypto-currency market. It happened a few weeks after the Japanese government assigned Bitcoin the title of legal payment instrument.
Japan has been and is still a very important region for crypto-currency industry. And this is not because here the electronics and robotics technology are well-developed, but thanks to the active interest in Ethereum. Mt Gox platform, that traded Bitcoins, was founded in Japan. Its crash has ruined a big part of Bitcoin industry. The consequences of this failure together with the loss of thousands Bitcoins caused the mass price collapse, when the Bitcoin rate decreased from more than $1000 to several hundreds.
Japanese, however, haven’t lost the faith in crypto-currencies, and the legalization of Bitcoin proved it. Now, Ethereum is catching up with it. The biggest Bitcoin exchange platform in Japan Coincheck now offers the possibility to trade Ether on its platform. Adding Ethereum to the basket wasn’t a surprise, since it has become one of the most demanded crypto-currencies in the world. Except Coincheck, many other big crypto-currency platforms, such as Bitfinex, Kraken etc., have offered recently the support of the Ethereum.
By adding Ethereum to Coincheck, the platform users will be able to buy and sell Ether with the help of their credit cards and SWIFTs. Ethereum can be also purchased with Bitcoin. Coincheck is already known as the most convenient exchange service in the country, and it offers several paying options and convenient user interface.
In spite of the fact that the main Coincheck currency is JPY, the transaction with any other currency, USD for instance, will be automatically changed to the JPY. Such scheme simplifies the trading on Coincheck for foreign users.
Coincheck, as it is known, offers a multifunctional platform for Bitcoin trading. People interested in trading Ethereum, can receive access to the same number of tools. The increase of Ethereum price during the last several months have attracted more attention of crypto-currency traders, which respectively increased demand. One can expect that more and more people will trade Ethereum in the nearest future.
Depending on how Ethereum will show itself in the coming months, we can expect from it the title of legal payment instrument in Japan.
What Is Ether?
Ethereum platform – maybe, the most ambitious project in the sphere of crypto-currencies after Bitcoin creation – is already half a year on the market. Right now Ethereum takes the fifth position in the crowdfunding projects list, ending up the fundraising on September, 2 2014 on the mark of $18,439,086. They have the plans of decentralizing of everything possible in the Internet. The main aim is the creation of the decentralized system of programmed logic contracts, which will use the chain of system blocks. In this respect, the official Ethereum blog says: “What Bitcoin makes for payments, Ethereum makes for everything that can be programmed”.
Ether is the inner crypto-currency of the Ethereum. It ensures the system authorities and acts like the sign of exchange inside this decentralized network. The network can be used for the encoded and safe transaction of anything: voting results, domain name, company government, agreements, etc. In addition, smart-property, financial exchange, and crowdfunding become much easier.
Ethereum protocol is public. Its crypt language can be used for creating of any program, while the application can be written on any programming language. The created application will be run in the cloud, so safe that the developers see the perspectives of using it in the transport and health protection spheres.
Separate accounting units called “1 Ether” are the blocks which are used for building everything else. The blocks are functioning inside the general network. Every network is the computer program that has its own balance, memory, and code. On their basis the applications with the open source are built, which are installed in one click. Among such applications can be programs for contracts, cloud databases, decentralized hosting, forecasting markets, trade platforms and personal crypto-currencies.
Unlike Bitcoin, Ether is not used as the world digital currency, it serves as a specific fuel for Ethereum, meaning that every action within the system needs a certain amount of Ether. The miners, who assure the authenticity of transactions, as with Bitcoins, receive the award in Ethers.
So, essentially, Ethereum platform is a particular decentralized super-computer, where Ether as the accounting unit of computing power serves as inner currency, needed for the access to system functions. The more computing power you need, the more Ether you should return.