What is Ethereum?
Ethereum is a blockchain platform that uses smart contracts and is one that stayed on top of the popularity chain. It was introduced and co-founded by Vitalik Buterin in 2015. Since then, its popularity has been constantly rising. In fact, it is the second biggest cryptocurrency in the world.
Ethereum can be defined as a decentralized platform based on the blockchain technology powered by functions known as “smart contracts” with the ability to power decentralized applications (dApps). Smart contracts are scripts capable of executing tasks automatically in case of unmet conditions and is the back-bone for many blockchain use-cases done by many industries.
As a decentralized system, Ethereum is fully autonomous. It does not come with any central point of failure as thousands of computers from volunteers around the world run it.
Positive Benefits Associated with Using Ethereum
- Shorter block times – In comparison to Bitcoin, Ethereum can create cryptocurrency transactions records and allow blocks in a comparatively faster making it a truly efficient platform in the field. The block time in Ethereum is only usually set at around 15 seconds.
- Open and decentralized – Another benefit of Ethereum is that it works as an open and decentralized system. This means that no single authority will be in charge in decision-making and processing transactions and that complete transparency is guaranteed to the users.
- Capable of executing smart contracts – Ethereum can automatically run and execute functions using smart contracts. These smart contracts are useful in creating agreements between parties within blockchain networks with the aid of a cryptocurrency. Smart contracts let all the parties involved to develop contracts in such a way that there is no longer a need to do it while a third party is present.
- Works as an application platform – Ethereum also lets computer apps run on its network. Aside from the smart contracts, the network also allows the use of apps that contain ether making Ethereum the go-to protocol for start-up blockchain companies.
Ethereum rapidly grows in popularity because of the many rewarding potentials and benefits it offers and is the go-to platform for many companies doing blockchain centric applications. Just make sure that before you take part in this industry, you are fully aware of how it works so you can really make the most out of it.