Why is Ethereum a complex network?
At the time when Ethereum was developed, Bitcoin was already leading the crypto market. Although they both share similar features, what differentiates Ethereum from Bitcoin is a revolutionary technological development: the smart contract. The executable tool would later be the reason for Ethereum’s popularity because it allowed streamlining transactions and the creation of further ecosystems, like DAOs and dApps.
Even if the blockchain’s use case exceeds its price, you can still learn how to buy Ethereum because the coins might help purchase NFTs and other digital assets within communities. Its value might not be the same as Bitcoins’, but it can indeed open the door for numerous opportunities to create unique networks.
However, many consider Ethereum too complex to enter as an ecosystem. Part of that is because its community is among the strongest and most spread. The importance of worldwide validators, miners and nodes maintains the blockchain as one of the strongest and safest crypto environments. But how easy is it to enter it? For those in Australia, finding the best crypto exchange Australia can help simplify the process and make it easier to access Ethereum and other cryptocurrencies.
Ethereum’s programming language: Solidity
While Bitcoin’s primary programming language is C++, which is more commonly used and easy to understand, Ethereum uses Solidity. The language was created explicitly for Ethereum for the creation of smart contracts. Although it was based on Python and JavaScript, it takes longer to learn than a regular programming language.
Solidity has numerous use cases besides smart contracts, such as creating code for the Ethereum Virtual Machine (EVM). It also has the benefit of handling complex data and variables. At the same time, it has features similar to Natural Language Specification and Application Binary Interface (API).
Ethereum changed its consensus mechanism
Changing a consensus mechanism is hard work, but Ethereum successfully did when the developer team noticed that the old PoW was slowing down transaction time. The switch was made in 2022 to provide more security, as well as transform the blockchain into a better ecosystem for implementing scaling solutions. Finally, PoS allowed Ethereum to consume less energy on regular activities and, therefore, become more sustainable.
The process was called the Merge, and it considerably reduced gas fees, accelerated transactions and enabled staking withdrawals. The update was linked to other blockchain improvements, such as the Beacon Chain, the Shanghai upgrade and sharding.
Users can interact with Ethereum differently
Bitcoin users have it easy because the blockchain is a simplified version of Ethereum. For example, if you want to become a validator, you can simply download the blockchain software. The role of a validator is extremely important to the blockchain because it ensures that transactions run correctly without leading to congestion.
Or, what most users do is generate your private key along with a wallet address and use their features to buy and sell digital products, such as NFTs. If you want some entertainment, numerous play-to-earn crypto games require only a small fee for participation and playing, and you can further earn a few pennies for spending some time online.
You can even get to mine on Ethereum, which is a regular activity for those involved in the crypto industry. The cost of mining includes the cost of hardware, electricity, and additional fees if you mine in a pool.
Ethereum is a constantly evolving blockchain
It may be possible that many underestimated Ethereum since its value isn’t that much compared to Bitcoin. Indeed, the media fueled its popularity, but it missed the point of Ethereum’s actual value. Unlike other blockchains and networks, Ethereum is constantly evolving through the efforts of global developers, validators and nodes.
That’s why the development roadmap is still going, and the checked updates made considerable improvements to the platform. The Merge was only the beginning of the improvement process, and the following updates include:
- The Surge will handle scalability and data sharding;
- The Scourge will deal with decentralization and strengthening censorship resistance;
- The Verge will make block updating easier;
- The Purge aims to reduce costs related to running nodes;
- The Splurge will deal with any remaining issues on the blockchain;
Of course, there are many other technical upgrades that don’t get the same media attention, such as staking withdrawals, account abstractions and Verkle trees. If they’re not announced, that doesn’t mean Ethereum isn’t constantly improving.
Ethereum is the leading ecosystem that brings people together
Despite it being a technological advancement, the truth is that Ethereum is more people-oriented, although it relies on heavy computational power. Ethereum can be used for crowd-funding through the use of DAOs (decentralized autonomous organizations) as well as for voting purposes and other similar needs. The main benefit of using it for these crucial choices is that it’s not prone to corruption because of the smart contract function.
At the same time, new developments such as DeFi (decentralized finance) work perfectly on the Ethereum blockchain because they allow the sector to grow and create financial systems that are perfect alternatives to current economic governments and rules.
Moreover, Ethereum is an excellent place for dApps to be created because it has no limits for developers. Any user can share information on the blockchain or help beginner developers in the making of a new app, and numerous tools are also available in these communities. dApps are incredibly important because they show a new way for communities together through decentralized and censorship-resistant environments. At the same time, they encourage newbies to continue their projects by trying specific technology for unique creations.
What do you think about Ethereum?
Ethereum was originally created after Bitcoin’s white paper. Therefore, the two cryptocurrencies and blockchains might share similar features, but they differ in numerous ways. First, Ethereum has an unlimited coin supply, while Bitcoin has a maximum of 21 million coins. But what’s more remarkable about Ethereum is its smart contract function that allows the creation of specific tools and online systems, such as DAOs, dApps and even NFTs.
Actually, NFTs were initially known as Ethereum-based assets, which is why all creators charge Eth for their digital creations. Therefore, Ethereum grew by being unique, but for this feature, many developers had to work hard to maintain the blockchain and keep it safe for new users.