Ethereum (ETH) has been around for exactly three years by far, and since then has brought many innovations to the world of the blockchain, while being voted up as the top first blockchain platform in China, while enjoying the place of the second-best crypto as by the official ranking list.
With over 48 billion dollars in market cap collected in the course of three years as Ethereum is celebrating its third birthday on July 30th, Ethereum has earned its respect with the utilization of smart contracts. What is smart contracts technology, what is Ether and could Ethereum potentially replace Bitcoin by taking over the spot number one in the future as indicated by many crypto enthusiasts?
What is Ethereum?
Unlike Bitcoin, which was created in C++, Ethereum added an extra twist to the developing story of blockchain technology, enabling further developments and integrations in more than several programming languages, which would include C++, Go, Rust and Solidity, so the platform would enable utilization of different decentralized apps, otherwise known as Dapps in the cryptoverse.
Ethereum (ETH) makes up for the largest platform in the market while hosting numerous ERC20 type tokens that are coexisting with Ether on top of Ethereum blockchain, while Ether represents a native coin, which is mineable.
Ethereum ecosystem represents a decentralized platform build with blockchain technology, made to process fast and cheap global payments in ETH while allowing developers to make Dapps and execute and utilize smart contracts.
These features combined is exactly what makes Ethereum a groundbreaking application of blockchain technology, while its creator and CEO of Ethereum, Vitalik Buterin, has more plans for Ethereum in the time to come.
Although Ethereum can process payments in the matter of a minute, it can easily happen that the transfer of your Ethereum units might take up to 15 minutes tops, however, ETH transactions are still faster than those made with Bitcoin which may take up to several hours and even days sometimes.
Future Plans for Ethereum
The significance of Ethereum lies in the fact that this platform makes up for a home for multiple different tokens, that way making it one of the most prominent blockchain ecosystems.
However, since Ethereum has the greatest number of decentralized applications for various purposes, as well as multiple millions of ETH holders and users, the platform has some scalability issues, which means that the developments are a bit harder to take place within the system, while the system can go under traffic jams and prolonged processing times.
Vitalik Buterin is looking for ways to resolve this issue, which could potentially skyrocket Ethereum in the following years, while there should be more programming languages offered for developing smart contracts for different varieties of purposes including the creation of decentralized applications.
How Does Ethereum Work?
Since Ethereum is mineable, much like Bitcoin, miners serve the purpose of processing transactions on Ethereum blockchain as ETH is being sent from one wallet address to another, validating blocks in order for the payment to be completed.
At the same time, while serving the purpose of offering cheap and prompt transactions, ETH is also offering smart contract utilization and Dapp development, with millions of people using smart contracts to make any type of transaction possible, which means that with Ethereum platform you can actually exchange any type of value, including real estate, cars, and different products and services.
To simplify the term and the use of smart contract technology, we can easily say that smart contracts actually represent programs that are designed for a specific purpose, while developers can also use smart contracts to create different types of Dapps that could be used for personal and business purposes.
Should I Invest in Ethereum?
Basically, you need to buy either Ethereum (ETH) or Bitcoin in order to be able to purchase any of the available coins, tokens, and altcoins that you are planning to add to your portfolio.
However, while Bitcoin is only representing a currency, Ethereum, although ruled as a currency by the decision of Securities and Exchange Commission, is so much more than a currency.
While allowing faster payments when compared to Bitcoin, Ethereum offers a unique opportunity of utilizing smart contract technology with ETH units on their platform, allowing digital records, signatures, contracts of all sorts and finally the creation of Dapps, which plays a major role in allowing developers to easily build and distribute their apps to ETH users while earning Ether along the way.
Even with the new ICOs arriving and offering new promising technology, with the upcoming future updates that Vitalik Buterin has planned for Ethereum, ETH makes up for a solid choice.