I'm trying to explain Ethereum to someone with little tech knowledge, please help

So basically he is skeptical about Ethereum and particular Ethereum mining because he thinks its not helping anyone, just like Bitcoin. What do I tell him?

So basically as I would explain it, Ethereum is a new blockchain that can not only store transactions but also contracts using all sorts of programming languages via DAPPs (using EVM / Ethereum Virtual Machine Code). The mining process helps to validate those transactions on the blockchain. So the energy we use to mine is not wasted, it is used to create a secure network of contracts that are decentralized, stored on many computers (P2P).

What other arguments can I make to convince this person that miners are doing something valuable and not just wasting their time?

Also, how exactly does a mined block help secure the network? That part I have never understood myself, is it because we are all storing a copy of of the block on our computers? Or how exactly does it make it 'secure' (in simple words)?




Comments

  • adrianmcliadrianmcli Member Posts: 8
    edited August 2015
    That's way too technical, you have to give them a simple example that they can relate to. Maybe something like this:

    Imagine you have a bunch of friends betting on what sports team is going to win. If Team A wins, then the people who bet on them will get the money. And if Team B wins, then likewise. This money distribution is typically handled by a sports betting website that you all sign up with, or maybe just some guy that you guys agree to trust. In either case, you are all trusting a centralized actor.

    As of now, there are many sports betting websites that can handle all this for you. But what happens if the people running the website is corrupt and decides to skim a bit of the money from you? What if they got hacked? What if they reported the wrong team winning?

    With Ethereum, the job of the sports betting website is taken care of by the entire network. Everything is done out in the open and by a "trustless" system.

    This is only an example in sports betting, but you can easily see how that can extend to insurance pools. And with a bit more thinking, you can see how this can extend to almost any human activity that requires group coordination.
Sign In or Register to comment.