With the recent boom in the number of Initial Coin Offerings (ICO) to raise funds, one of the lesser known technologies gaining momentum is ethereum. With Vitalik Buterin and Carlos Corrascione having worked out the technical solution for a self-executing smart contract, ether has emerged as the favorite software for smart contracts. Although initially confined to chat programs and online forums, ether now has traction into the global financial world. There are several reasons for its popularity.
The main reason why ethereum enables fast and reliable execution is its scalability. Unlike other blockchains like the Windows and Linux, ether allows a much higher level of parallelism, giving it a distinct advantage. By increasing the number of machines that can run a particular smart contract, it increases the speed and reliability of execution. On a broader scale, ether also has much lower overhead than other leading blockchains such as Visa.
Another reason why ether is becoming so popular is that it provides an easy to use platform to experiment on. Compared to the complex and risky bitcoin scenario, ether comes with a simplified user interface and a built-in documentation. Unlike bitcoins which requires a high degree of computer code knowledge, ether’s low level of complexity allows users to test the network protocol with a simplified user interface.
With a token-based ecosystem, ethereum gives you a way to monetize your website. Unlike traditional online stores, ethereum lets you issue tokens on the ethereum network, which can then be traded between websites. This removes the need for costly hosting fees or expensive payment processing. When you decide to sell your token, all you have to do is send your transaction request to the ethereum network and wait for your order to be processed. token based ecommerce is highly advantageous for anyone who wants to accept payments for his/her products and services without having to deal with payment processing costs. On top of that, if you want to introduce different types of tokens, you can easily transfer your balance from one ethereum smart contract to another.
Unlike other successful cryptocurrences, ether has drawn a clear distinction between its ‘contracts’ and its ‘dashboards’. While most dashboards out there have limited functionality, the smart contracts in ethereum allow you to construct, modify and debug your own smart contracts. This greatly reduces the time needed to develop dApps, which in turn, lowers the overall cost of building your business. By implementing smart contracts, you will be able to leverage all the benefits of a scalable and secure distributed ledger with a distinct programming interface.
The biggest advantage of ethereum compared to other currencies is that it enables its users to create ‘dApps’, which are applications that run on top of ethereum network. These apps can perform different types of transactions, including buying, selling, renting, and many more. Since these transactions happen behind the scenes, you don’t need to deal with complicated protocols or worry about security issues. In contrast, with other technologies, you may have to deal with complex protocols, tedious set-ups, and lack of versatility when it comes to running your business.
Furthermore, ethereum Networks offers you several advantages over other currencies. Unlike other cryptocurrences like Dashboard, Maidstone, and Bitcon, ethereum networks is built as a community with its own programming language and documentation. The reason for this is to provide greater usability to its users, which will increase their efficiency and productivity.
The biggest disadvantage of ethereum is that it still remains relatively unstable as compared to bitcoin. Despite that, there have been several developments that should reduce the risk of its usage as well as increase its reliability. One of these is the release of Metropolis, which aims to introduce improvements in the reliability and scalability of ethereum networks. Another problem is its price. While some experts forecast that the price of ether will stabilize at around $12 per coin by the end of 2021, others believe that it will go much higher. Because of these factors, ethernet Networks may not be the right coin for you if you are planning to trade in multiple currencies.