Having surpassed Bitcoin, Ethereum processes more than 1 million transactions daily. Like BTC though, Ethereum has a lot more potential. It is a whole network fuelled by its BTC equivalent, Ether (sounds similar to a certain infinity stone, doesn’t it?). Like other cryptoassets, it is based on blockchain technology, making it decentralized. But here instead of tracking the ownership of a digital currency, it forms a network for all other sorts of applications, quite like a document on google drive, which can be shared-allowing users to ‘create apps.’ This, in turn, eliminates the need for a middleman.
Most importantly, new Ethers are minted in the Ethereum Network without any reduction in its rate. Thus, eliminating the biggest disadvantage of BTC, where the number of coins are limited and can lead to wealth inequality.
But how exactly does this work? The network uses ‘Smart Contracts’– used to define a code which can be used to trade in a transparent way. Smart contracts help avoid the need for an intermediary. If the terms are agreed to by all parties involved, the contract is carried out and the transaction is completed on the network that everyone is connected to.
This also ensures that the contract can’t be tampered with. This allows Ethereum to create a whole infrastructure for trading and investing. At least, in theory, the Ethereum network leaves no room for corruption or tampering of data because data is stored across multiple platforms. As a user, you can execute multiple contracts, and trade resources in Ethereum without any concerns about security or time lag.
Ethereum can also be used for real-time payments of course, as the transactions take around 15 seconds to proceed. It is quite simple really, with no hassle involved!
Ethereum certainly has impressed many a people. It has gone from $10 in 2017 to over $1400 in January 2018. The blockchain technology application of Ethereum could grow all the more in the next few years, allowing it to take over Bitcoin not only as the premier cryptoasset but also as the preferred mode of transaction around the globe.