Ethereum is an open-source blockchain platform allowing users to create decentralized applications (DApps). It is often used as a form of digital currency but also has a wide range of other uses such as smart contracts. It provides a framework for developers to create, reuse and execute peer-to-peer applications securely.
Recently, Initialized Capital founder and venture capital investor Garry Tan has been making headlines with his suggestion that Ethereum can be used as what he refers to as ‘ultrasound money’. This means that digital currencies can be sent quickly and securely, similar to the speed of sound waves traveling through the air. For example, he suggests that Bitcoin transactions are currently 15 times slower than they could be with Ethereum.
In this article we will discuss what Ethereum is and how it can be used as ultrasound money, including some advantages and disadvantages of using Ethereum. We will also cover other interesting facts about Ethereum that you may not have known!
What is Ethereum?
Ethereum is an open source, blockchain-based distributed computing platform that supports the development of distributed applications, also known as dApps. It also features its Turing-complete virtual machine, the Ethereum Virtual Machine (EVM).
Ethereum also features its cryptocurrency, Ether, used to pay for networking, computing, and storage related services on the Ethereum network.
This article will delve into the features and benefits of Ethereum, as well as its associated cryptocurrency Ether.
History of Ethereum
When most people think of cryptocurrency, Bitcoin is often the first thing that comes to mind. But many don’t know that there are other popular cryptocurrencies out there as well—one of them being Ethereum.
Ethereum was created in 2013 by programmer Vitalik Buterin as an open-source software platform designed for distributed applications and smart contracts to be built and run without interference, fraud, or censorship by a third party. It was developed to allow anyone to create and run their decentralized application – much like how thousands have been designed on the Bitcoin network. Ethereum is also the native cryptocurrency of its network which can be used to pay miners who agree to validate transactions and secure the network from hacks. This token is commonly called “ether” or “ETH”.
The launch of Ethereum was met with technical and financial success, becoming one of the largest blockchain projects in terms of market capitalization in 2021. Nowadays, it serves thousands of developers worldwide building assets such as non-fungible tokens (NFTs), digital collectibles used for games like Cryptokitties, and many more innovative applications. It’s not only about buying and trading value though — through its smart contracts technology Ethereum has enabled entrepreneurs worldwide to launch startups using Initial Coin Offerings (ICOs).
ICOs enable companies or individuals to crowdfund their projects by raising money through ether tokens which can later be exchanged against other major cryptocurrencies such as Bitcoin or fiat currencies like USD or EUROS.
How Ethereum works
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent property ownership.
Ethereum uses a public blockchain similar to Bitcoin but allows users to create their digital currency or token and define rules for its use. The blockchain also stores data from users within dapps, known as state networks, and interacts with each other through an internal cryptocurrency called Ether (ETH). The power of Ether comes from its ability to provide a secure network for smart contracts; these are self-executing pieces of code that can manage financial transactions within the Ethereum blockchain.
Unlike most traditional currencies, which rely on centralized systems or third-party services for security and storage, Ethereum maintains its data distributed across all nodes in its network. This eliminates the risk of single point failure and increases security by ensuring that every transaction requires consensus among multiple parties before it is accepted as valid. Additionally, since Ether is not printed like traditional currencies but rather mined using computers running software algorithms to release new tokens into circulation, no central authority can manipulate Ether’s supply or value.
What is Ultrasound Money?
Ultrasound money, a term coined by Initialized Capital founder Garry Tan, is a new form of money generated by the Ethereum blockchain. This type of money differs from traditional currencies because it relies on sound waves that move at the speed of light, allowing payments to be sent without waiting for confirmation from a third party.
This article will explore the concept of ultrasound money, how it works, and its potential applications.
Definition of Ultrasound Money
Ultrasound money is a term coined by Garry Tan, a founding partner at the venture capital firm Initialized Capital. It is based on burying richer and more nuanced information in pieces of digital money than could ever be achieved in physical world analogs due to physical limitations of size and scarcity.
In December 2017, Tan argued that Ethereum (a cryptocurrency) was “the first form of ultrasound money.” He explains that unlike physical bills or coins, the digital nature of Ethereum allows for complex conditions to exist within it. For example, Ethereum can hold data about what type of goods can be bought or sold, incorporate IoT-style tracking through time-stamping or block-hashing connected to objects or services, and contain business logic that eliminates the need for intermediaries such as banks.
Using a layered approach where components are placed at different depths within the code – akin to ultrasound imaging – its value lies in its embedded attributes rather than the amount exchanged between parties. Tan believes this ultimately presents an opportunity for entrepreneurs to develop innovative applications for sending resources — energy, money, securities or real estate — between people using private blockchains and distributed ledgers that interoperate seamlessly with existing financial systems.
Benefits of Ultrasound Money
Ultrasound money, also known as blockchain-based money, is one of the latest forms of digital currency. This type of financial technology uses blockchain technology to facilitate online transactions, and it is growing in popularity worldwide. Compared to traditional methods of doing business, Ultrasound Money (USM) offers several advantages that can benefit businesses and consumers alike.
USM transactions are generally faster and more secure than those with traditional services. USM also enables merchants to offer real-time updates to customers, providing them with enhanced tracking capabilities and greater control over the overall process. USMs are also typically backed by a blockchain, providing higher levels of security than legacy systems. Due to its distributed record-keeping system, which makes it difficult for hackers to access customer’s financial data or personal information without authorization.
In addition, USMs typically have lower transaction fees associated with them as fewer third parties are involved in the process. Lowering costs will enable businesses to pass those savings on directly to their customers through lower prices or special deals. Many forms of digital currency also incur lower foreign exchange fees – so sending payments internationally can become more affordable for businesses sending payment overseas and consumers making purchases internationally using Ultrasound Money instead of legacy forms such as cash or debit cards.
Finally, USMs offer a greater degree of freedom for businesses than legacy systems may be able to provide — particularly when it comes to customizing particular aspects such as issuing loyalty points or rewards points for customers who shop online from particular merchants through an Ultrasound Money program rather than that same merchant’s typical payment gateway system (e.g: Paypal). It provides flexibility not offered otherwise through traditional means since most financial institutions do not support such custom parameters yet; this gives companies an advantage over competitors who only offer “out-of-the-box” payments options like cash or debit processing services available via banks or other methods that require additional setup costs and/or cumbersome bureaucracy processes before launching them successfully on their website(s).
Garry Tan’s Opinion
At the SXSW conference, Garry Tan, founder of Initialized Capital recently stated that Ethereum is ‘ultrasound money’. This statement has generated a lot of discussion as it relates to the value, security, and visibility of Ethereum.
Etherum is ultrasound money, says Initialized Capital founder Garry Tan
Garry Tan, the founder of Initialized Capital, recently shared his views on Ethereum and ultrasound money in an interview on Cointelegraph. According to Tan, Ethereum is high-frequency trading on a blockchain — “ultrasound money”. Similarly to stocks that have prices that move around rapidly, that’s what Ethereum does, only even faster than stocks.
He believes that the current cryptocurrency market is seemingly dominated by developers and speculators who are not focused on the longer term projection of the project itself. To make serious money in this space, Tan maintains a long-term view: “Really making anything substantial in this industry is not about fleeting fast trades or flipping coins…It’s all about looking deeper into projects and taking positions over time” He speaks further about why it’s important to rely on teams rather than individual people; as he explains, it could take days for all necessary operations to be completed with a person responsible for them all rather than relying on a “good team”.
Tan highlights that one major challenge when investing in crypto assets is getting early access to quality deals due to the limited number of participants and “strong competition”. However one advantage with crypto investments according to Tan lies in its borderless nature; anyone from any country can get involved with crypto investment so long as they have an internet connection.
Garry Tan’s theory that Ethereum is ultrasound money is an interesting concept that will require a lot of study and research to understand fully. However, it can potentially revolutionize how we think about money and how financial institutions can use crypto technology.
Creating digital currencies that are secure, private, secure, easy-to-use, and worked for all types of transactions – regardless of location or device – is attractive to many people in the financial world. For the moment though, Ultrasound Money is still in its development phase, but it’s worth watching as it evolves. Understanding Ethereum’s functionality and implications for existing systems could aid this process.
Ultimately, Ethereum could become a major player in the upheaval of traditional banking systems worldwide if it provides greater speed and ease for financial transactions than existing methods have been able to deliver so far. Whether or not this will happen remains uncertain at this time. In any case, Garry Tan’s Ultrasound Money theory suggests an interesting new way to look at digital assets.