What is Ethereum?

• The most actively used blockchain, established to enable the creation and use of smart contracts and decentralized applications.
• the worlds computer, global and open sourced platform for decentralized applications / platforms
• Consensus Mechanism - Currently proof of work, but moving to proof of stake
• internet money. ownership stake is code-based Ethereum based economy ($500b market cap)
• Smart contracts are self-executing contracts between different users which represent an agreement over assets on the Ethereum blockchain. This contract is represented as code encoded into the Ethereum blockchain. Smart contracts are important as they allow for users to create complex financial instruments and contracts which are self-enforcing and exist on a decentralized blockchain
• The value of Ethereum in the long-term is likely to be tightly coupled to demand for smart contracts. Since Ethereum’s launch in 2015, the platform has seen a pronounced evolution of the types of smart contracts deployed on Ethereum

Tokens and Decentralized Finance.

• DeFi (Decentralized Finance) is a global, open alternative to the current financial system
• In DeFi, a “smart contract” replaces the financial institution in the transaction. It is a self executing contract with terms of contract between the buyer and seller directly written into lines of code. They cannot be altered once created and will run as programmed
• Tokens are crypto assets which are created and managed by a smart contract and exist on the Ethereum blockchain. Tokens allow developers and businesses to create their own crypto asset without having to develop an entirely new blockchain
• These crypto assets are now used for a variety of things such as stablecoins and tokenized equity; in the future a wider range of assets could be issued as tokens on the Ethereum blockchain.
• DeFi applications are contracts and financial instruments which attempt to replicate existing financial instruments and functions such as derivatives, lending, and automated market making in decentralized ways — such that these can work without the existence of a centralized intermediary or issuer

Non-Fungible Tokens (NFT) & Decentralized Autonomous Organizations (DAO)

• NFTs (Non-Fungible Tokens) are blockchain tokens representing a unique, digital item, that allow individuals to buy and sell ownership. Examples include: A unique digital artwork, A unique sneaker in a limited-run fashion line, An in-game item, An essay, A digital collectible. A domain name, A ticket that gives you access to an event or a coupon
• DAOs are internet-nativebusinesses that are collectively owned and managed by its members, providing an effective and safe way to work with like-minded individuals around the globe
  • DAOs have built-in treasuries that no one has the authority to access without the approval of the group
• Examples:
  • Charites: Individuals can accept membership and donations from anyone in the world and the group can decide how they to spend donations
  • Freelancer Network: Teams can create a network of contractors who pool their funds for office spaces and software subscriptions
  • Ventures and Grants: Individuals can create a venture fund that pools investment capital and votes on ventures to back. Repaid money could later be redistributed amongst DAO-members
• Types of Membership:
  • Token-based membership
  • Share-based membership
• The backbone of a DAO is its smart contract, which defines the rules of the organization and holds the group's treasury
  • Once the contract is live on Ethereum, no one can change the rules except by a vote