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Ethereum 101

Identifying Opportunities

Throughout this module we’ve explored how the Ethereum Virtual Machine can be used to build decentralized applications. Because these systems are quite complex, it’s important to avoid trying to shoehorn the wrong business model into a decentralized format. The following process can serve as a litmus test to identify if a problem needs a decentralized solution.



Down arrows

The first step is to verify that the problem you want to solve is actually possible to approach with a decentralized solution.

  1. Can this problem be solved with minimal reliance on third-party data?
  2. Is it always possible to determine a logical outcome for the problem?
  3. Is it possible for this solution to operate with complete transparency?
  4. Can the outcome of the problem be resolved to the movement of on-chain assets?
  5. Is it possible for this solution to exist without the need for digital asset management?


Up arrows

If the answer to all of the last questions was “Yes” then it may also help to confirm that a blockchain-based solution is appropriate. There could be an easier or cheaper alternative, so it’s best to consider whether a decentralized solution is actually the optimal course.

  1. Are there large inefficiencies due to incomplete or inaccurate information in existing solutions?
  2. Is there a need for more equitable ownership and access to these kinds of systems?
  3. Is there a need for greater freedom of expression or open communication within this system?
  4. Is there a need for greater assurance or automation in this process?

What should you do if your use case isn’t possible yet?

One great example of efficient integration of blockchains is the Ethereum Name Service and .xyz domain names. A bridge was developed to support the Ethereum Name Service and they can now be used with decentralized identities!

Get Involved

The best part of blockchain is that anyone can get involved!