With cryptocurrencies, like Bitcoin and Dogecoin, becoming increasingly popular, many people are looking for ways to join the crypto market. Ethereum has been on the market for many years, though many people don’t understand this unique blockchain or how it works. Considered more robust than the bitcoin blockchain, Ethereum promises to do much more than simply provide a currency.
Ethereum itself isn’t a cryptocurrency; it is a blockchain-based decentralized digital ledger. Russian-Canadian Vitalik Buterin originally developed it as a way to deconstruct online transactions and record-keeping, removing the need for trusted third parties with contracts, transactions, and a range of other activities.
Ethereum consists of a series of cryptographic public records linked together following the blockchain structure used for bitcoin transactions. These records can be anything from debt information to property deeds, and they are all publicly accessible. Any changes that are made can be seen by every Ethereum user, as long as they know the right details to find them.
Unfortunately, though, thanks to the size and scope of the Ethereum blockchain, only a handful of transactions can be performed each second. This situation has led to severe bottlenecks for those using this system.
The developers behind Ethereum covered the costs of the original servers and machines that were responsible for updating records on the blockchain network. Unfortunately, though, this proved extremely expensive as more users joined the system, prompting the creation of Ether.
Ether is a cryptocurrency similar to bitcoin. It was created initially to reward outside users who dedicated their own processing power to maintaining and expanding the Ethereum blockchain. Each block added to the virtual ledger is rewarded with 3 Ether. Over time, it has gotten harder and harder to achieve these rewards.
While Ethereum is often considered more robust than the bitcoin blockchain, this system still comes with some issues. As mentioned above, speed is a significant part of this, even after the developers upgrade Ethereum’s technology to make it faster. At peak times, this can make it very difficult to use Ethereum quickly.
Alongside this, many banks and other financial organizations have criticized Ethereum, stating that a lack of consumer trust means that it isn’t sustainable. Fraud has also been an issue for Ethereum, with the lack of centralized regulation making it very hard for large companies and countries to adopt the system on a wide-scale basis.
Ethereum is a very promising development in the world of blockchain and cryptocurrency technology, even if it has some issues. As time goes by, this system is likely to be updated significantly, though this doesn’t mean that it will necessarily stand up to the future additions to this industry.
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