Ethereum's Pros & Cons

in LeoFinance2 months ago

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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.

If you want to learn the basics about Ethereum and its underlying technology, please check out this beginner-friendly crypto guide by @crypto-guides: What Is Ethereum (ETH)? - Ethereum Guide

In this blog, we are going to look at some of the major PROs and CONs of Ethereum Blockchain:

PROs

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

CONs

  1. 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.
  2. 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.
  3. Ethereum undergoes frequent changes and it continues to evolve since it's an experiment. This increases volatility in price since the future is uncertain.
  4. Learning curve is steep since the technology is new. Very few resources are available for developers to understand and get up to speed.

What is @crypto-guides?

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https://leofinance.io/@finguru

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Not financial advice. For infotainment purposes only.

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Thanks heaps for doing this post.

Quality formatting, quality content and well deserved that it's already going to pay out over 100 LEO for you.

This content will definitely be added to the Ethereum guide.

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That's awesome, glad you liked it @forexbrokr. Will do more contributions whenever I get the chance.

And yeah, it has paid quite well for my efforts. That's why I love Leo Finance. ✌

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Great read. Pros and cons duly highlighted. Hope the upcoming Ethereum’s London hard fork addresses the scalability problems and high cost fees properly


Posted via proofofbrain.io

Yeah, looking forward to London hard fork. It might make it easier to traverse through all the chains.

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Yeah. It will really be game changing for ethereum if all things work out as planned


Posted via proofofbrain.io

I think you listed all of the pros and cons I can think of for ETH.

Posted Using LeoFinance Beta

Tried my best to cover all the major ones. Hope this helps!

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You were able to present a very important, useful and kinda detailed overview of ETH.

Well done, @finguru.

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Thank you so much @wiseagent. Cheers!

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We need a guide like this but of all the important cryptocurrencies in the market and their functions, in order to have a complete library.

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That's correct @fabian98. That's the major goal of @crypto-guides. :))

It would be great to see the Digital Footprint of these projects on Leo Finance.

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always good posts on your profile, for now I don't trust Ethereum very much ... it's a big blockchain, but it doesn't work. It's all tied to the hope that ETH 2.0 will one day come and work.