Ethereum (ETH) is the biggest altcoin out there and one of the most widely used blockchain platforms. It's not just a currency but a platform of choice for many developers looking to create decentralized applications. Both Eth & Btc have hit their all times high in 2021. Many people think that Eth will soon be going to 'flip' bitcoin and dominate the markets when it comes to total market capitalization.
In this blog, we are going to look at some of the major PROs and CONs of Ethereum Blockchain:
- One of the biggest features of Ethereum is Smart Contracts. It allows developers to build code that would execute when the set permissions are met on the blockchain. Since they are no middlemen, false play is avoided making the process more trustless.
- Ethereum is fully decentralized & transparent. The number of nodes operating on the Ethereum Network around the globe is in thousands and no single entity owns the network. Every node has a copy of the ledger, hence nobody can actually tamper with the transactions.
- To perform transactions on the network one needs to pay Gas fees which avoids the network from downtime. Also, a 51% attack on Ethereum is almost impossible since the network is distributed worldwide.
- Decentralized Finance is so hot right now and it dominated the crypto space in 2020. Ethereum DeFi Ecosystem has gone so huge along with BSC, Polygon, Polkadot, Cardano, etc. It has transformed traditional financial products into trustless and transparent smart contracts that run without intermediaries. Providing complete financial freedom to everyone on the planet.
- Ethereum Foundation led by Vitalik Buterin (Co-founder, Ethereum) & its expanding developer community are the most important assets Ethereum has. It provides a support system to the wider Ethereum community and promotes the development of Ethereum based applications and related technologies.
- Ethereum has multiple use cases like the creation of DAO (Decentralized Autonomous Organizations), ERC-20 based tokens, Stablecoins, NFTs etc. It is attracting business from every domain anyone can think of. This drives the demand and usability of the coin.
- Recently, Ethereum has been struggling with scalability issues & poor user experiences like High transaction costs (GAS Fees) and longer transaction times. Even though Ethereum is the blockchain development platform of choice, but it has limitations.
- To solve the scalability issues Eth is undergoing a change from 'Proof of Work' to 'Proof of Stake' mining. We still don't know if it's going to work or not. It's a lengthy process and the transition won't be easy.
- Ethereum undergoes frequent changes and it continues to evolve since it's an experiment. This increases volatility in price since the future is uncertain.
- Learning curve is steep since the technology is new. Very few resources are available for developers to understand and get up to speed.
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