What is Ethereum and its benefits?

What is Ethereum?

Ethereum is the hottest new technology of blockchain though it is still growing, it has reached a billion-dollar mark and gained worldwide attention. So what exactly is Ethereum?

To put it simply, Ethereum is an open-source decentralised public service that uses blockchain technology to facilitate smart contracts and cryptocurrency trading securely without the need of a third party. Just like bitcoin, ethereum is also a decentralised network. This means that anyone, anywhere in the world can download the software and begin interacting with the network. Ethereum is a network of computers which runs on Ethereum blockchain and allows people to exchange coins. Ethereum enables people to create smart contracts. Smart contracts are scripts that automatically execute tasks when certain conditions are met. The cryptocurrency of the Ethereum network is called ether. Even though bitcoin remains the most popular cryptocurrency, its ethereum’s aggressive growth that has left the leaders of the market amazed and they believe it will overtake bitcoin in usage.

Benefits of Ethereum:

• Open and Decentralized- Just like bitcoin, ethereum technology is based on blockchain technology and is open & decentralised which means there is no single authority that controls the transactions or makes decisions about what will happen in the network.
• No downtime- Since it is a decentralised network and instead hosting on thousands of nodes, there is no downtime. This means the network never shuts down. The only time it can shut down if all the nodes crash at the same time which is unlikely to happen.
• The network can execute smart contracts- One of the main feature which differentiates the ethereum network and another blockchain network is the ability to run and execute smart contracts. Smart contracts are a way of using cryptocurrency to create agreements between parties on blockchain networks. In smart contacts, two unknown parties create contracts in the absence of the third party. This in turns reduces the possibilities of deceiving each other.
• Smaller fees and expenses- Since ethereum run smart contracts on Distributed autonomous organization, it eliminates the need of third party supervision and this, in turn, saves the trader from paying any unnecessary compensation to the third party.
• Transaction speed- Mining and transferring tokens is faster on the ethereum blockchain especially when compared to bitcoin. In general transferring bitcoin may take up to 10 minutes whereas transferring ethereum takes a matter of second.

While there is a lot of speculation regarding Ethereum, it is important to note that there is a very high scope of a tangible future. Experienced traders have already shown a lot of interest and are anticipating that it will turn into a big thing in the coming days.

To learn more about the possibilities of ethereum and other cryptocurrencies, visit www.learnbitcoinanalysis.com