Review on Ethereum by Matias Pino
The pioneers of Smart Contracts and decentralized applications.
Ethereum is a new concept of company, programming language and crypto currency all in one.
The Ethereum project began to develop at the end of 2013, finally scheduled and executed in 2015. Its two founders are Vitalik Buterin and Gavin Wood.
First of all, we have to clear up the misconception that Ethereum is a cryptocurrency unlike Bitcoin or Litecoin which are open source protocols that were developed with the aim of serving as payment systems.
Ethereum is a platform for decentralized applications. This means that no entity or person controls it, but that it is distributed over a wide network of many computers.
The applications that run on this decentralized system work with the help of so-called Smart Contracts, that is, programmable, immutable and self-executing contracts. For example, a purchase-sale contract or a lease contract, without the need for a company to act as an intermediary since the contract would be executed only according to the clauses defined by the users, withholding the payment or releasing it when necessary.
The (ETH) is the monetary unit with which the execution of smart contracts is paid. In other words, (ETH) is the cryptocurrency of the Ethereum platform.
Thanks to its characteristics Ethereum has brought many interested parties, because it is not only a cryptocurrency but it is also a platform in which theoretically all kinds of things can be programmed and automated without the need for intermediaries from anywhere in the world, everything that is You need an internet connection, being able to send or receive, borrow or earn interest anywhere in the world.
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Pros
- The contracts are programmable, immutable and self-executing, providing greater security when buying, selling or acquiring services.
- No intermediaries are needed since the transactions are carried out in a P2P environment.
- It is an innovative, easy-to-use platform with valuable and practical tools for decentralized application developers.
- Compared to Bitcoin, transactions are much faster due to the fact that they take 15 seconds to confirm.
- It allows interoperability with the other tokens created under the Ethereum network.
Cons
- Currently transacting with Ethereum is not very profitable due to the high commissions that are generated when sending or receiving Ether.
