Despite the popularity of Bitcoin (BTC) as a decentralized currency that various individuals operate, there are still other applications, platforms that use the blockchain technology. Specifically, we have Ethereum (ETH) which is a public software designed for aiding developers to build and organize decentralized applications.
To elaborate, Ethereum convinces users to work for their cryptocurrency (called Ether). This is unlike Bitcoin which although is also decentralized is still mined and currently, controlled by a specific set of individuals. ETH (otherwise known as Ethereum) was created by Vitalik Buterin and publicized in 2014. After which, in July 2015, it was launched in beta. That said, ETH definitely has a few differences and similarities (in comparison to others) that can be segmented into pros and cons.
Pros of Ethereum
For one, smart contracts are self-executing contracts that Ethereum (ETH) is built to exactly execute. They are contracts that enforce a set of rules at any preferred time of yours. An instance is setting up payments that are secured by triggers i.e. you deliver this, payment is automatically released. You fail to deliver it, and payment is reversed into my account.
Essentially, smart contracts can be tailored to suit your needs which can vary across situations like crowd funding agreements, breach contracts, property laws, and etcetera. This is only possible because ETH uses the Turing language which as already mentioned, eradicates the need for intermediaries when using ETH’s function (smart contracts). This literally has no side effects and is in fact, is attracting more interest since it’s highly beneficial in different sectors (gaming, e-commerce, and services).
Additionally, Ethereum is backed by clients which have made spikes in the price of Ether in December 2017. So, financially speaking, ETH is an investment plan that’s garnered the attention of different individuals. Still, as always, investment plans aren’t proof and the evidence is the recent plummet in prices throughout January this year 2018.
Fortunately, there are multiple plans in place that the developers are striving to put to work. This plans or better yet, updates, are being implemented constantly and the results, despite the discouraging prices in January, are still keeping Ethereum in afloat as one of the three big cryptos. In comparison to other cryptocurrencies, this is a big deal since ETH never lacks in developmental support.
Crons of Investing in Ethereum
Despite all of these advantages, Ethereum (ETH) has some inert disadvantages. One is a permanent inefficiency due to the nature of ETH. In other words, a platform cannot be faster than say, a cryptocurrency like Bitcoin—that is built specifically to be a digital currency. There have been reports of lagging and slow speed (in transactions) by various individuals across the globe.
Another factor that’s noted is upgrade of the platform and lack of documentation where it concerns learning Ethereum. Any upgrade (especially in the case of ETH) always brings along a security risk. There will be opportunities for hackers to make their move and this window is opened for longer periods. This is due to the time-consuming nature of upgrades being performed on the platform. For the latter, there is simply no material for educational purposes in case you want to become a developer. Many have tried and from research, only the nit bits/basic are available to prospective developers.
To conclude, Ethereum as a runner-up to Bitcoin has the potential to rival the cryptocurrency—in time. And even if it doesn’t, the current trend it’s following and setting offer enough information that it’ll be a major investment (and also platform) in the coming future. It will, of course, depend if the advantages outlined above will be retained and improved over time.