BusinessMiles Beckler

Is Ethereum Bitcoin 2.0? Programmable Money, Smart Contracts And Decentralized Apps Run On Ether

hey miles here miles Bechtler calm and in this video we’re going to talk about bitcoin 2.0 potentially blockchain 2.0 so last week in a video I dropped a little bit about Bitcoin and how it works to help you understand what this technology that’s coming out and catching a big buzz actually is today we’re going to the next level which I consider to be the next evolution of the cryptocurrency and we’re gonna be talking about aetherium now aetherium is another cryptocurrency that really took off to fill the gaps where Bitcoin dropped off originally Bitcoin wanted to come out as programmable money but due to the fact that there’s no leadership team there’s different factions of people within bitcoin who can’t agree on what direction to take Bitcoin aetherium came out of this with a leadership team and a vision in order to create truly programmable money so what’s the big difference between etherium and Bitcoin right there both blockchain based technologies they run on the blockchain there they both have their own currencies right they ether is the currency of aetherium the real difference is last week when I was talking about how Bitcoin is a distributed ledger or essentially like a distributed database theory ‘m is essentially a distributed supercomputer so we’re a database is able to kind of do ins and outs of numbers and keep track of things like a ledger a computer is truly programmable and that’s what aetherium is bringing to the table here and in my opinion that’s what makes the potential utility value of aetherium at least 10x that which is Bitcoin aetherium has a full Turing complete language built in to where anyone can go program smart contracts digital or excuse me decentralized applications and other things I’m not my goal here just like the last video is not to get super technical and super deep I want to help you understand this from kind of a broad perspective perspective from a 30,000 foot overview so you can understand what these technologies are so as you see movements and people talking about them you’re clued into the technology behind these names so back to a theorem right I mentioned that it’s a turing-complete programmable supercomputer so whereas Bitcoin is a ledger if theorem is a supercomputer everyone running aetherium is effectively running the supercomputer that can be programmed by software developers and they’re able to program smart contracts or digital applications and a few other things but these are the easiest ones to grasp and this is really what makes it magic so let’s dive into these what’s a smart contract a smart contract is a super simple piece of code that to use a recent example there was a recently a big boxing match the the Conor McGregor Mayweather fight essentially a smart contract would allow someone to go program on to etherium right saying if Conor McGregor wins then do this if Floyd Mayweather wins then do this it allows two parties to come into an agreement put that agreement on the blockchain and then when certain requirements are met the blockchain knows to pay out in the direction of what was met okay so if the gambling kind of example is super simple if you and I chose different sides on that wager we both chose to wager one ether coin we put that all on the smart contract it would essentially be holding each of our coin in ether in escrow right and then once the script read once the excuse me not the script but the actual smart contract receives the data of who the winner was the smart contract knows to payout the winner of that bet now ether is something I mentioned ether is the currency that runs aetherium now not only is it a means of exchange and that kind of gambling based example that I mentioned but it also puts a situation together where the ether is what’s paid out to all of the individuals who are running the nodes of aetherium right so if theorems this gigantic distributed supercomputer that means there’s individuals all over the world running aetherium and they need to get paid and they get paid a tiny sliver off of every smart contract in something called gas but you don’t need to know too much about that that’s going a little bit deep let’s talk about the decentralized applications because what they do is they actually take that basic idea of a smart contract and they build it to the next level and this is where things get really really exciting so think of it as a normal web-based interface or a normal app interface and I’m in this app and I go to purchase something in the app and behind the scenes right now that purchase goes through a centralized organization right there’s a bank involved and there’s a corporation involved and when my payment is received by them I get the app that I purchased and I’m able to download it if you wanted to you could very very simply replace let’s keep the app interface the same right but when I go in to purchase I pay in ether and that ether goes out and it says to the distributed supercomputer that this person paid and then it can pull that app straight to my phone essentially bypassing the centralized banks and essentially bypassing the centralized corporation obviously whoever created that app that I downloaded would receive the funds but it gets even better than that I want to use an example of like a music streaming app because we all stream music right I don’t care if you use Spotify or or even if you stream YouTube right or if you’re on app and or of your app and or a friend of Pandora fan excuse me so let’s say you’re running a an audio app on your phone and instead of all of our funds going to the corporation which is what happens right now right so if you’re a paid subscriber to Pandora you’re paying Pandora which is a centralized corporation or if you’re not a paid person and you’re watching advertisements instead all of that revenue then goes to Pandora and now you and I are there to trust we have to trust that Pandora is doing the right thing and actually paying out the artists whose music we love imagine this imagine an app that’s running on your phone and you’re able to pick your playlists and shuffle things up and add your playlists or use some that kind of technology that runs Pandora right it can have a suggestion engine in there so the user interface from your end could be exactly the same and you can have a budget and you could say every month I’m paying $9 right and what the smart contract inside of that distributed application could do is it could actually spread your funds out directly to each of the artists that you listen to so if you put one artist on repeat and you just keep listening to them over and over and over might be 2 cents a song might be 4 cents a song but it could literally bypass the corporation which has offices employees high paid CEOs it has investors to pay back it has rent it has utilities it’s got a lot of operating expenses that effectively cut into the payout for the person you just want the music right so it’s a way of potentially building these applications to where that artist would actually get the bulk of the proceeds obviously whoever creates that gap that D centralized application they would get a cut and the people running that distributed network who manage and make sure that each time that payment goes out it gets split up effectively and that gets kind of sealed up in the blockchain they all would get a tiny tiny tiny sliver of every time those funds moved this is where it gets really exciting to me because the ramifications of these kinds of decentralized apps are that every single industry that’s already been disrupted has the potential of being disrupted again so Airbnb is a really good example right now right so Airbnb just disrupted the hotel industry and has created a behemoth of a corporation they are raking in profits and they are paying out to investors fat ebo body I’m just gonna call it that right like they’re doing really darn good imagine a situation where there’s a special lock right it’s a smart contract enabled walk on the door of a rental property I go into my app I’m looking for a room in a town that I’m gonna stay in I find one I click pay my money goes on to the blockchain at this point through ether I put ether into the smart contract the smart contract then gives me a code to open the door I go up to the door I punch in that code in the smart contract enabled lock when I open that door and get access to the property the funds are then distributed to the owner of the property directly we have just bypassed the corporation now in this example it’s a little bit incomplete right because there are benefits to Airbnb being an intermediary right now right they hold a big insurance policy for every home that’s involved in it there’s customer support there in case I have a dispute with an owner if I show up and it’s not what I said it was so these ideas are still at like a really really really light protocol layer right they’re not being developed yet and that’s what fully it kind of excites me about aetherium is that it’s right now being positioned and it’s growing effectively with developer tools no one’s really creating these user interface solutions that I’m talking about this is a little bit of vision or futuristic kind of idea that we’re working with what’s happening now is developer tools are being created to help developers and programmers build on this kind of decentralized application on the etherium supercomputer right it’s a full programming language so the first thing we need our programs to be written that allow us to easily make smart contracts so when I decide that I want to exchange something of value for you let’s say you want to join my membership program which I don’t actually have but let’s say you want to join my membership program maybe that could all run with an aetherium back-end we could run it on the blockchain when you go through and purchase access aetherium the actual distributed network of computers that run aetherium that code could say yep they paid give them access to the website then you get access to the website you’re in I receive the funds at that point we have bypassed stripe the merchant account the banking fees etc etc this is why I really think that aetherium is super powerful there’s more to aetherium that I haven’t even gotten into the fact that it’s an e rc 20 token and what this kind of means really briefly is that the etherium token is built in a way that other tokens can be built and made to run on the etherium supercomputer this is a big part of what is creating the huge explosion of icos or initial coin offerings and there’s coins coming out to do all kinds of different things there’s gambling coins coming out to create new gambling base wet sites that are gonna have smaller margins from the house which means more of the bet goes back to the user right there’s less of a cut there’s less of a take for the house so in theory they can have better odds and they could attract more gamblers through those web sites but they’re also going into all kinds of interesting finance into big mega finance they’re even looking at how to do ETS it could be really really disruptive for the financial world but it goes way deeper just like I was talking about with a music example or the rental the Airbnb example the possibilities are limitless and in in aetherium zweite paper which is kind of their guiding document it’s the this is where we’re going document they said that there’s four phases right we’re in the second phase and it’s about to upgrade to the metropolis phase which will happen probably sometimes next week and that’s when all the big developer tools and the big development stuff comes out enabling developers across the world to build these DAPs and to build these smart contracts they can receive kind of value from people using their gaps that sparks the revolution their fourth phase is serenity and I find this to be really fascinating they believe the kind of goal of aetherium in its fourth and final phase is to literally disappear so you and I go about our daily kind of routine we buy things our phone we use apps on our phone we interface with websites and we don’t even realize that the etherium blockchain and the etherium network is powering everything we do we’re still paying in dollars we’re still doing everything the same way we’re doing right now the user experience for us is the same but what happens is the back end runs so much more efficiently and it’s decentralized so control is not hoarded by corporations and mega banks this my friend is extremely powerful the last thing before I let you go that I love about aetherium is it has a kind of a leader right there’s this kid white Alec he’s like an absolute boy genius Wonder he was really into Bitcoin for a while he wrote the white paper there’s now a gigantic foundation around him he’s meeting with world leaders and business leaders to see how people are able to integrate aetherium there’s the right now there’s like an ethereal Enterprise Alliance which is a bunch of corporations like Cisco IBM and who are all working together to understand how to leverage this etherium blockchain technology in their businesses to make their businesses run better and the fact that there is literally a leadership team who is fired up their focus their goal is making this the best there is Bitcoin doesn’t have that Bitcoin was invented by an anonymous individual or group of individuals and since then it’s just been in the public’s hand it’s a great libertarian example but what’s happening is people can’t get together and come up with a great idea on how to move this thing forward whereas aetherium you have a core team they’re funded they’re fired up and they’re able to get together and say this needs to be implemented boom it gets done they move forward this needs to get implemented boom it gets done and they move forward to me aetherium is probably one of the most exciting things going on in cryptocurrency I definitely am holding both etherium and Bitcoin this is not investment advice all I’m trying to help you understand is what is going on and what the core technology is behind this that has a chance to help you in your digital business in the future and potentially has a chance to disrupt many many many aspects of our world and I think this is not going away I don’t think this is a speculative bubble in any way shape or form I don’t know where the pricing and value fits in if we’re anywhere near what would be a good long-term value but what I do see is that the technology that is coming out is far superior to the way we’re doing it because it decentralizes everything it removes those massive core controls which can effectively lower the margins required for these businesses these autonomous organizations to run and therefore they can give you the end user and me the business owner better deals by bypassing the traditional system that has had a lock on control on everything that’s why I think it’s so revolutionary and that’s why I think it’s going to really really take off and gain massive adoption so if you haven’t heard about a theorem yet go do a little bit more research I think it’s the most exciting thing going right now I’m gonna get more into icos and what’s being built on the ERC 20 tokens in a future video but at this point I’m gonna leave it here I wanted to give you that breakdown of what a theorem is because I do believe it’s blockchain to I do believe it’s Bitcoin 2.0 its price does not reflect that right now but I think there’s a lot of value that’s going to be moving into the etherium network over the next few years as they continue to add on great features and developer tools because ultimately having a big huge group of developers all making really cool apps that you and I want to use on our phone to make it easier for us to do what we want to do and less expensive for us to do what we want to do that is an absolute recipe for success this all runs the etherium Network all runs on the ether currency so I’m looking at the whole like rising tide floats all boats situation right if we’re all using a theory and based smart contract based digital kind of decentralized applications and those all run on ether seems to me logically like there’s a reason for either to become more valuable in that kind of a scenario I hope this has been informative if you have any questions feel free to hit me in the comments below if you enjoyed this video give me a thumbs up here I’m gonna get out of this incredible sunshine that just popped in out of nowhere but I thank you very much for popping in I thank you for watching the video if you made it to the end you are a hashtag badass good on you leave a comment below let me know you made it to the end as a hashtag badass I love it and I thank you again for your time looking forward to connecting with you on the next video

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