What is Ethereum?
Ethereum (ETH) – Today, with the development of technology, we can use decentralized technologies, i.e. eliminate middlemen and transfer data, information or money directly. The method in which the third party is eliminated and the process proceeds directly between two people is called peer-to-peer transfer. Ethereum is one of these decentralized platforms in which no individual or entity has direct control over network data. Ethereum whitepaper was created by Vitalik Buterin in 2013. This white paper describes a publicly available, open-source, blockchain-based distributed computing platform capable of executing smart contracts. Ethereum platform smart contracts are created using the Ethereum Virtual Machine system (Evm).
In fact, this virtual machine is part of a protocol that runs smart contracts or scripts. The Virtual Machine executes scripts using an international network of public nodes to ensure that the platform is uncensored. Smart contracts or scripts are created by a new programming language called Solidity. In addition, the Ethereum Blockchain uses Ether to execute scripts and reduce spam on the network. When an operation takes place in the Ethereum network, the cost of the operation must be paid. This fee is called Gas. Due to the use of a unique programming language, the Ethereum network is known as a blockchain or global consensus computer on which programs run.
Who Invented Ethereum? What are his goals?
Vitalik Buterin is the creator of Ethereum and one of the leading thinkers in the cryptocurrency world. Vitalik Buterin was born in Moscow, Russia. The 25-year-old Russian is known around the world for his achievements. He is one of the founders of the blockchain-based platform that developed the bitcoin idea. Vitalik has also contributed to various business programs and processes in independent companies by providing smart contracts.
He entered the world of cryptocurrency to discover a new passion in life and started Bitcoin Magazine in 2012. In 2013, Vitalik Buterin submitted all his research and ideas in the form of white papers to prominent people in the field of cryptocurrencies. Finally, Ethereum was introduced in 2014.
What are the advantages of Ethereum over Bitcoin and other Altcoins?
Bitcoin and Ethereum each have their own unique features and are technically different. Ethereum is very accurate and smart, but Bitcoin is not as good as Ethereum, and its centralized applications and collections have drawbacks. The hash algorithm (mining algorithm) of Bitcoin is SHA-256; But the ethereum mining algorithm is Ethash, which has a powerful memory.
In fact, the Ethereum (ETH) algorithm can reduce transaction costs and consume less energy. On the other hand, one of the most important reasons that motivate investors to choose Ethereum over Bitcoin and other Altcoins is their significant price difference. As cryptocurrency trading is booming, investors are looking for reliable cryptocurrencies, so more buyers are attracted to Ethereum. Overall, Ethereum guarantees investors’ profits by offering a variety of options.
Disadvantages and challenges
Admittedly, this platform is not perfect and has some problems. Ethereum like Bitcoin, has a decentralized protocol. By comparison, Ethereum is almost twice as fast as Bitcoin. However, Ethereum is slow compared to other platforms. Scalability is another problem with the Ethereum platform.
Transactions are so slow that Ethereum’s public blockchain can only handle about 15-20 transactions per second. Institutions require a large number of transactions, and Ethereum is currently unable to do this on its main public network. However, there are other versions of the Ethereum blockchain that do not have these restrictions, and Ethereum has partially resolved this issue. The third challenge Ethereum faces is the programming language.
As mentioned earlier, Smart contracts or scripts are created by a new programming language called Solidity. Solidity is a problematic new programming language. In other words, developers need to encrypt their smart contracts in a new language that they may not be familiar with.
Another problem with Ethereum is its security weakness, which makes it slightly weaker than its competitors in this area. Other problems such as stability and monitoring are among the weaknesses of Ethereum Blockchain compared to its competitors in the cryptocurrency world.
What will be the future of Ethereum (ETH)? What is the projected price for the future?
The future of the Internet certainly depends on Ethereum. Ethereum is a world-class computer that uses blockchain technology. Ethereum is a secure base for various fields such as e-commerce and the Internet of Things. Ethereum allows for transparent governance of communications and businesses while maintaining the security of users’ communications. It provides users with features such as authentication and secure payment. Given the above, the future of Ethereum is very exciting.
However, like Bitcoin, Ethereum has scalability issues. To solve this problem, the parameters of decentralization, scalability, and security in the Ethereum blockchain must be balanced. Ethereum ‘s solution to achieving scalability and solving other problems is to introduce the next generation of Ethereum. This popular cryptocurrency has grown significantly since its inception.
Despite the major changes in the ETH ecosystem, the development of ETH is not a pipe dream. Investors and cryptocurrency market experts believe that this coin will make significant progress and there will be no particular concern about its trend. According to experts, this platform has the potential to reach new levels and successes over the next five years and become one of the top 10 cryptocurrencies in the world. They also see this cryptocurrency as one of the currencies that closely competes with the cryptocurrencies leader (Bitcoin).
Ethereum (ETH) is one of the most popular cryptocurrencies in the world; it is not only a digital currency but also a platform for developing decentralized blockchain-based software. The platform has made it possible to create smart contracts without manipulation, censorship, and third-party intervention.
Today, Ethereum can be seen as a good investment and storage option thanks to its innovative technology and significant advancements. With these Capabilities, investors and crypto professionals envision a bright future for the platform, and many believe that there will be no concerns about the platform’s growth.
Source: The Pipsafe Team