Ethereum refers to a blockchain-based distributed computing platform that is powered by the cryptocurrency Ether. Ethereum has been designed to provide a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.
Pros of Ethereum
1) Ethereum cuts costs
Ethereum allows companies to build decentralized applications and smart contracts. Therefore, it eliminates the need for third parties, which cuts down on transaction fees, and also reduces the amount of time that is required to agree with business dealings (such as with international trade).
The volatility of the Ether cryptocurrency has declined since its launch in 2015. In the first six months after launch, Ether’s price swung wildly. However, since early 2016 it has stabilized and has fallen compared to other cryptocurrencies such as Bitcoin, which has been experiencing significant value fluctuations. This contributes to Ethereum in Australia being preferable over Bitcoin to investors who are looking for a more stable cryptocurrency.
3) Ethereum is less prone to hacking
Ethereum has a reputation for being one of the most secure blockchains in the world. Because all transactions are verified through a network of supernodes, it is believed that this will eliminate malicious activity like hackers trying to steal users’ money.
4) High Return on Investment
The Ethereum blockchain is relatively new, which means that there are still many untapped opportunities for businesses to build their products and services. This ultimately leads to a high return on investment for those who invest in this technology early and take advantage of these opportunities.
5) Less danger of inflation
Ethereum has a fixed inflation rate for every coin in existence. This puts all the power into the hands of developers and companies who control coins in existence, rather than having them controlled by a central authority like governments.
Cons of Ethereum
Australians are still relatively new to cryptocurrency. There is a lower amount of knowledge on the subject among Australians compared with other countries. This is partially due to the complexity of the technology and partly due to the lack of a significant trading market in Australia, which makes it difficult for Australians to make educated investment decisions.
2) Lack of regulation
Because Ethereum is not regulated, no oversight body can ensure that developers are operating within certain guidelines set out by law. This means that there is no way for third parties to ensure that projects are being built in the best interest of consumers.
3) Security concerns
The security of the Ethereum network is not guaranteed. Because it is a public network, it could be disrupted by a government’s involvement (i.e. because they view it as a threat to national security). Therefore, interested parties should make sure that they invest in this space only when they have thoroughly researched all possible risks and risks, and have prepared for all possible outcomes.
4) Ethereum smart contracts are not legally binding
Many people believe that the Ethereum network doesn’t require human interaction due to smart contracts being able to execute themselves. However, because smart contracts aren’t controlled by a central authority, they are not legally binding. This means that if there is an error made by a developer, users are at risk of losing their money.
Ethereum is a relatively new technology and its future success is still not certain. However, it has the potential to change the way we do business in the future. Therefore, as long as users do their research and prepare for possible risks in advance, Ethereum could be an awesome investment for those who are looking to diversify into blockchain technology.