What are the advantages of ethereum?
What are the advantages of ethereum?, Russian computer programmer Vitalik Buterin, who started to be interested in Bitcoin when he was 19 years old (2011) and signed many articles by establishing an online news site called “Bitcoin Magazine”, said in late 2013, ” Decentralized applications that can be used by all kinds of application developers. published his report on Ethereum, a platform that can be created. What is Ethereum for you? (ETH) What is Ether? Is It Safe? How Is Ethereum Mining Done? We sought answers to their questions.
What is Ethereum?
What is Ethereum?, The platform, financed by online participants in July and August 2014, was introduced by Canadian Buterin, one of its founders and developers, at the Bitcoin conference held in the north of the USA on July 30, 2015, and with 72 million coins in a short period of 2 years after its announcement. (Ether) has come to life.
Ethereum, in its simplest definition, is an open source platform based on Blockchain technology that enables developers to create and distribute decentralized applications.
The platform, which has no manager and therefore has a completely autonomous structure, has no center and is completely online, as it is operated from the computers of thousands of volunteers around the world.
The control of the contents of the system, such as various applications and videos, which prefer the users’ personal data to remain on their computers, is completely under the control of the creators, regardless of the rules of the server services such as App Store or YouTube.
What is Ether (ETH)?
The terms Ether and Ethereum are often confused by people and even used interchangeably.
Ether is a blockchain-based digital coin or cryptocurrency. In other words, the Ether coin Ethereum is its platform. However,
Developers who want to build applications or “smart contracts” on the Ethereum blockchain need the Ether token. With Ether, users can sell services outside the Ethereum network and accept payments with Ether.
Ether tokens can be sold for cash on exchanges just like Bitcoin.
What is the Difference Between Ethereum and Bitcoin?
What is the Difference Between Ethereum and Bitcoin?
Although it is thought to be in the same classification as Bitcoin, a cryptocurrency and a decentralized payment network that allows its tokens to be transferred between users, the situation is quite different.
Although they are constantly being compared, Ethereum and Bitcoin are two separate projects with completely different goals.
The Ethereum project is a decentralized platform that works with smart contracts, and the system itself has many big goals for the future.
These contracts run on the computing network “Ethereum Virtual Machine”, created by devices running Ethereum nodes.
The decentralized platform means anyone around the world can create and run an Ethereum node.
Smart contracts are subject to a fee. A low fee is required for these transactions.
People running Ether nodes provide computational power and get paid with Ether, just like Bitcoin.
In other words, while Bitcoin is just a blockchain-based payment network, Ethereum is an information processing network distributed with Blockchain, which can be used or used for many things.
Smart contracts are not yet foolproof. Although it is very difficult to be hacked, some mistakes that can be made by the people who prepared the codes can cause serious problems.
Ethereum is the first example of the second generation blockchain wave and has been consistently maintaining its pioneering success from yesterday to today.
Of course, it has various similarities to Bitcoin, but the two blockchains are extremely different and each has its own advantages over the other.
What is a Smart Contract?
To explain when computer scientist Nick Szabo coined the concept of smart contracts in the late 1990s, he used the example of vending machines and stated that vending machines could be considered the predecessor of modern smart contracts.
In the vending machine example, there is a simple contract. The user throws a coin into the machine, and the machine in return delivers the product the user wants.
A smart contract applies the same logic in digital terms. The Koda says “Hello, World!” A simple task such as send answer is entered.
Smart Contract is just a code. The “Code” mentioned here is not really a smart contract or “Contract” as we know it. The code is smart because it acts on its own on certain commands, and the Contract is, in a sense, the contract as it enables agreements between parties to be fulfilled.
The process we mentioned above is one of the simplest examples of what you can do with Ethereum. More sophisticated applications that link many contracts can and have been created.
How Is Ethereum Mining Done?
Mining is critical to the security of the network, ensuring that the blockchain can be updated fairly and the network can operate without a single decision-making authority.
Cryptocurrency mining is, in a way, a process of solving complex math problems. Miners are the cornerstones of the cryptocurrency network, as they ensure the verification of Ether transactions with the computing power and time they devote to spending these math problems.
In addition, they are also responsible for creating new Ether tokens, as they receive Ether as a reward for successfully completing proof of work tasks.
As the number of miners involved increases, problems become more difficult to automatically resolve. Therefore, while the rewards shrink, time and processing power to solve increases. However, as the value of Ether continues to rise, the rewards miners receive are still substantial.
Many people also see mining as an ideological stimulus. In this way, they also consider that they are directly supporting the network. They also benefit from newly created ether (2 ETH).
How many Ether are there in total?
Ethereum total production is not subject to any restrictions. Unlike Bitcoin and many cryptocurrencies, Ethereum supply is not limited to any number.
The only restriction on Ethereum supply; is the limitation on the amount of Ether that can be mined annually, not exceeding 18 million.
Although the number of Ethereum production is stated to be 18 million on an annual basis, it has declined to 4.7 million units over time, after Vitalik Buterin stated that the supply will decrease significantly after the Ethereum 2.0 update, the maximum number of ETH issues per year was pulled up to 2 million units.
It is also worth noting the statement of the Ethereum developer that “coins will be burned to comply with the supply limit”.
What Are The Advantages Of Ethereum?
Since it is not possible to change any data in Ethereum, it is unlikely that third parties will make any changes to the data. Since there is no censorship on the platform, it is not possible to give and record bribes in any way.
Ethereum; Contrary to popular belief, it is an extremely secure platform. Ethereum secured using cryptography; It is particularly well protected against attacks from outside.
It is not possible to experience any malfunction in the platform because applications running on Blockchain; they cannot become unusable. In addition, they are unlikely to be shut down.
What are the Disadvantages of Ethereum?
Since smart contract codes are written by various people, how good they are also depends on the person who wrote them.
Code errors on Ethereum; It may cause some temporary problems, but it is not possible for any attack to stop the platform.
Actions taken by a central person or institution; It can hurt the decentralization of the application.
Ethereum can only process 15 transactions per second.
The Neo blockchain, which can currently make smart contracts, can perform 10 thousand transactions per second.
If Ethereum developers cannot solve scalability issues, organizations may consider using other blockchains for smart contracts and dApps instead of Ethereum. If this happens, the future of Ethereum will be difficult.
However, Ethereum developers seem to be aware of the problems and, thanks to their avant-garde approach, have already left the impression that their investors will have no trouble overcoming such problems. What is Ethereum? (ETH) What is Ether? We tried to answer their questions. We are here to get your opinion on the subject and find answers to your similar questions.