To start with what is Ethereum; it’s the world’s second largest cryptocurrency and has scored above $4,000 which is a value recorded high uptill now and has continued to score high above 450% since year(2021)starting. But such a hike is not so as of the crypto Dogecoin, as discussed in previous article that Dogecoin although being result of a joke but had raise rapidly. As Dogecoin’s hike has crossed over 11,000% year till date.
Startup of Ether
Ether is popular base currency of Ethereum, which is a blockchain platform. Ethereum on the other hand was found in 2013 by Vitalik Buterin (Russian- Canadian programmer) and of course various other crypto business starters. Many of these entrepreneurs who were the beginners of Ethereum had earlier involvement in Bitcoin.
Ethereum took notice of Buterin from Bitcoin on the basis of its less functionality, due to which in an interview, he compared it to a pocket calculator. As according to him pocket calculator easily does only single thing well and comparing it with Ethereum, he further added that it is more likely of a smartphone having multiple applications. But similar to Bitcoin, Ethereum is also build on blockchain technology (distributed computer network which records all crypto based transactions). Apps could be build on top of Ethereum, whereas in Bitcoin one cannot.
According to Buterin, Ethereum is “ Blockchain with built-in programming language” and is the most effective platform for the people to use various applications in a logical manner.
Feature of Ethereum
The network of Ethereum basically revolves around ‘Smart Contracts’ which are collective codes carrying out instructions which further run on blockchain. Smart contracts are power decentralised applications which are very much same as smartphone apps running on Apple’s iOS or Google’s Android. But the only difference is that such contracts are not answerable to any single company. Even the rise of NFTs is due to Ether’s network and such digital assets are so designed as to show the ownership of virtual items. Where many of the NFTs are colourful online cats of CryptoKitties.
Bitcoin is on the other hand is a payment network which is used in transferring value amongst two people anywhere around the world. But it’s basic use at present is concerned with investing. Whereas, Ethereum creates infrastructure for internet and is not under supervision of single authority.
Ethereum these days is based on decentralised finance as mortgages and loans built using the same blockchain platform. But here working of blockchain differs as in replacing middlemen from governments as well as from banks.
Criticism of Ethereum
In 2017, CryptoKitties had heavily congested Ether’s network, which gradually resulted in slowing down of transactions and thereby giving chance to game developers to raise their fee.
Another issue with Ethereum these days is Scalability as it is based on proof- of work protocol which is just like the one used in Bitcoin. This feature would lead to difficulty for the cryptocurrency miners in validating transactions procedure, as it would become more complex. Therefore, resulting in maximum energy consumption as it is done by some other cryptocurrencies as well.
But the positive side to this is that Ethereum is working on upgrading it’s function by naming it Ethereum 2.0. And Investors are of the view that such upgradation would surely aid Ethereum network by way of processing various transactions rapidly and also supporting apps with million of its users.
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