This is a question we get a lot when we tell people what we do... However, when the word Bitcoin is mentioned, then most of the general public will know what it is.
So how does one explain to their friends and family what Ethereum is?
To put it simply, Ethereum is a form of Cryptocurrency that includes a virtual computer. The currency is called Ether. The idea/ideals behind Ethereum is to have an online computer, with a lot of computing power behind it, where it can be accessible to anyone across the world with an internet connection to do computational work cheaper and easier.
Lets jump into the future for a second and play a hypothetical. What if NASA in the future required immense computational work to calculate and simulate the landing of a spacecraft onto a distant planet, lets say Mars. What NASA can do is use Ether to purchase computing power from the Ethereum Network of computing power to help with these calculations.
Another example could be when a movie production studio wants to have their videos Rendered. Rendering videos requires some very expensive computers, but with the Ethereum network, this process can be done without having to invest in the equipment as sunk costs.
This allows for anyone that holds ether to own computing power. So you might ask what do the people who provide the computer get? They will get paid via Ethers. Each computation done will have a cost, the cost most likely being stated in the Smart Contract used as part of the deal to do the work. Smart Contracts are basically like normal contracts except facilitated by computer protocols. (We will dive into Smart Contracts in more detail in future blog posts.)
For More Information on Ethereum we suggest the following sites:
My Point of View:
Growing up around computers my whole life, I have seen a lot of really awesome things get developed, from having dial-up internet, to moving over to DSL and then fibre optics... to the uprisings of Paypal, E-Bay, Amazon, Apple, and Google just to name a few... Ethereum and the idea/ideals it stands for appear to be the next big thing in my honest opinion.
Computers are not going anywhere, if anything they are becoming more prevalent, I personally believe the next logical step as technology advances is to have computing virtually which can be access by all and even contributed to by anyone with computers (with an internet connection) to add to the virtual computing power and make some money (Ether) without much cost.
We here at VMXLabs specialize in Block-Chain Technology and GPU Mining. We produce rigs that have a lot of computing power for the purpose of Mining and also to add computational power to the Ethereum Network. For more information please go to Our GPU Mining Website for our Rig.
Article Written By: Michael Chow (Co-Founder of VMXLabs)
Personal Twitter: @DexVitalitY