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Review on Ethereum by Aniruddh Ravel
Major Competitor of bitcoin
Ethereum is comparatively new in the market. It released the blockchain technology only a few years ago. The interest has varied from one token to another with the release of new cryptocurrencies but Ethereum has gained popularity very quickly. The fact that it is not only a cryptocurrency but has an infrastructure for crowdfunding, contracts and offered something which was not available in the market earlier are the most prominent factors for the popularity of Ethereum. These factors have promised Ethereum success for the long-term. The developers of Ethereum are working on the code which other blockchains technologies normally lack. It is expected that Ethereum would become one of the largest companies in the world in the field of cryptocurrency.
Difference between Bitcoin and Ethereum
The Ethereum is just like Bitcoin and is a blockchain network which is publicly distributed. However, there are a number of differences between the Ethereum and Bitcoin and the most important distinction to remember is that the two substantially differ in capability and purpose. The Bitcoin can only offer one use of the blockchain technology which allows only for the Bitcoin payments.
The blockchain of Ethereum entirely focuses on running of the programming code of the decentralized currency. Whereas the Bitcoin blockchain can be used to track the ownership of the digital currency, Bitcoins. The miners in the Ethereum operate to earn a cryptocurrency known as ether which is used to fuel the network instead of mining the Bitcoins. The ether other than being able to use as a tradeable cryptocurrency, it is also used by the application developers to make payments for the services and transaction fees on the network of the Ethereum.
Pros
- Ethereum can also help in fundraising with a maximum impact.
- It has more availability of coins as compared to the Bitcoins.
- Since the applications are based on the network which is formed around the consensus principle, it makes censorship impossible.
- There is zero downtime which means the application is never switched off and will never go down either.
Cons
- Ethereum has its downside and the biggest drawback comes from it being a decentralized application system. Since the smart contract codes are written by humans and it is very likely for these codes to be faulty. These often lead to adverse actions which are unintended. Also, there is no way to stop an attack or exploitation efficiently because if any action is taken by the central party, it would completely defeat the meaning of a decentralized application.
