We have already spoken about Ethereum and it is familiar to everyone who came up across cryptocurrencies article at some point. Ethereum is a blockchain which contains a large number of cryptocurrencies (using ERC-20) tokens, and you can read something more about this valuable cryptocurrency in the following text.
What is Ethereum?
Ethereum is not a cryptocurrency, but a blockchain with Ether cryptocurrency. It is a distributed computer network based on the blockchain and has enabled clever contracts that eliminate the third party (brokers). This network allows developers to create dApps – decentralized applications, and the users can as well create tokens (ERC-20).
The great predisposition to increase the use of Ether cryptocurrency is Ethereum’s open source project, which means that developers don’t have to work on their own cryptocurrencies, but believe in Ethereum technology.
One of the greatest advantages of Ethereum is the ability to create decentralized applications.
At present, there are about 1800 applications in the market that are operative and in the protocol, and it is important to note that as many as 87% cryptocurrencies in the top 800 according to CoinMarketCap’s are ERC-20 token on the Ethereum network.
The advantages of Ethereum over some other blockchains and cryptocurrencies are certainly a variety of partnerships outside of the crypto world, like with Microsoft, Intel, J.P. Morgan …
Speaking of Ethereum we must also mention
some of its drawbacks and defects. The first problem that users of this
platform encounter are certainly scalability, and the problem is that only 15
transactions per second can be made on this platform – without slowing down the
Blockchain game Crypto Kitties was the
first blockchain game in the world and it was the first indicator of the
Ethereum blockchain problem. For example, we’ll mention VISA that can execute
24,000 transactions per second without any changes in the system. But will this
Are Ethereum blockchain problems being resolved?
Yes, of course. Developers working on this platform are trying to solve the problems by using hard-fork, and it’s certainly positive that Ethereum blockchain is constantly improving.
The question is whether Ethereum blockchain will reach the level of VISA that supports 24,000 transactions per second – without a change in the system, and if this happens, of course, this blockchain and Ether cryptocurrency will be increasingly used.
The problem with this is the “proof of work” concept where miners are making transactions and it is currently working on switching to the “proof of stake” concept to solve the problem of mining.
Will the price of Ether increase?
This is a million dollar question and it is very difficult to say whether the price will rise or fall. What we believe is that Ethereum blockchain will be much more used in the future than it is today, but we do not want to speculate on the price, even though it could get higher if the demand will grow. But who knows. 🙂