Ethereum is an open-source global platform that supports decentralized applications. It is more than sending and receiving payments. It can be better defined as a full-fledged marketplace of Games, Business Apps, Social Media, and financial services. ETH, Ethereum DApps, and ETH wallets are the terms associated with this platform. In this post, we will go in detail about all these along with the pros and cons of using Ethereum for your Crypto transactions.
Introduction to Cryptocurrency & Ethereum
Back in 2009, the term Cryptocurrency came into existence with the launch of the first-ever digital currency Bitcoin (BTC). In 2020, there are over 2,000 cryptocurrencies present in the market. High-security and Reliability are the two major forces behind the ever-increasing popularity of Cryptocurrencies. Currently, it is a billion-dollar market with an upward swing for the upcoming years.
Talking about Ethereum, it was launched in July 2015 by Vitalik Buterin and Gavin Wood. Presently, it is the second-largest Cryptocurrency platform after Bitcoin, with total users around 91,994,515 according to Ethereum News. Although Ethereum was built on Bitcoin’s innovation, there are some differences at the development level. For instance, Ethereum is a programmable blockchain. It means you can write code in Ethereum’s default build.
What is ETH and Ethereum DApps?
Well, ETH is the native Cryptocurrency of Ethereum which is traded while using Ethereum wallets. To start any transaction or operation on Ethereum, you need to create a wallet and all the transactions will be performed via ETH wallets.
All the services and products which are created and run on the Ethereum platform are called Ethereum DApps. Such apps are the future of the digital world. You name a business vertical and there is a complete Ethereum support to develop a DApp.
Pros of Ethereum
To start with, let’s discuss key merits of Ethereum below:
Programmable
As mentioned earlier in this post, Ethereum is World’s first programmable blockchain. Unlike the most popular BTC, the users of Ethereum can learn, develop, and execute custom code to control the digital value. The same is accessible anywhere in the whole world.
Comprehensive tools and tutorials
If you wish to try out custom code and to develop something on your own, Ethereum studio provides you with multiple tutorials on its official website; where you can learn about custom coding and developing DApps as per your requirements.
Ethereum also offers some in-built tools to support developers’ need to develop decentralized applications.
Diverse Community
To serve the diverse needs of its users, Ethereum is backed up with people who are from different backgrounds like artists, Fortune 500 companies (SMEs and Large Enterprises), and others.
Low Transaction Fees
If we compare the transaction fees of Ethereum with other blockchain projects, its fees are on the lower side. You can join Etehreum’s open system by simply creating a wallet.
Cons of Ethereum
In addition to the merits listed above, Ethereum does have some cons as listed below:
System Breakdowns
One major drawback of Ethereum is its unstable system. All the time there are developments going on which cause some system breakdowns at the user-end.
ETH Dependability
Another drawback of Ethereum is ETH (a native token of Ethereum) and other tokens’ dependability on the system. And when the system itself is undergoing changes at most times, how can you expect consistency from its tokens.
Intense Competition
Undoubtedly, Ethereum is the second-largest cryptocurrency behind Bitcoin. Still, it has several competitors like Cardano, TRON, etc. who are coming up with advanced blockchain protocols where Ethereum might lose.
Buterin’s Support
There is no doubt that the support and participation of Buterin in the Ethereum ecosystem makes it a reliable Crypto network. Still, the excess of everything is bad. So, every negative that is being linked to Buterin’s reputation is directly hampering the market position of Ethereum.
In Conclusion
Started with a single digital currency, the Cryptocurrency market is growing leaps and bound. Currently, it is a billion-dollar market in terms of investment and revenues. Thousands of people are adapting Cryptocurrencies as the prime mode of financial services. In such a thriving market, staying updated and evolving from time to time is important. This is what Ethereum is serious about. It has solutions for everyone, for individuals to large corporations.
Thus, a dynamic and advanced Cryptocurrency like Ethereum is all set to grow in the long-run. Be it immense competition from newcomers or some associated bad rep, ETH tokens are paving the way to a whole new world for digital transactions with its unique business approaches, as does the Ethereum community. This Cryptocurrency is not going anywhere while sustaining its current market position in the long run. To know more about the current market position of EHT & future price prediction, visit our other pages.
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