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Do you want to develop the fastest, safest, and decentralized app in blockchain?
If so, Ethereum Network is one of a kind for your software development.
Ethereum Network is a widely used network for blockchain products that offers developers freedom of control over their apps.
Today, we will take a deep dive into what is an ethereum net, how blockchain-based apps are developed using it, its pros & cons, and much more….
What Exactly is Ethereum Network?
Launched in 2015, Etherum is the second most famous cryptocurrency; Bitcoin is the first one. But unlike Bitcoin, Ethereum is much more than a virtual medium to store or exchange value.
Ethereum Network is:
- An open Source;
- Based on Blockchain;
- & decentralized
software development platform.
The coolest thing about Ethereum is that it uses its own cryptocurrency called ‘ether.’ By using this, one can allow Distributed Applications (ĐApps) & SmartContracts to be created and run without frauds, downtime, interference, and control of the 3rd party.
One can use ether to sell and buy goods and services just like bitcoins.
In simple words, Ethereum is not only a virtual platform but a programming language that runs on blockchain and helps developers to develop and publish distributed applications.
How does Ethereum Work?
Ethereum works on a blockchain network just like any other cryptocurrency. Blockchain provides distributed and decentralized public ledger where all the transactions are verified and recorded.
- By distributed, we mean any person participating in ethereum network has a copy of their transactions ledger, which allows them to see the transaction history.
- Decentralized means the app is not operated or located at any central system or entity. Instead, it is operated and managed by various persons who are authorised holders of the distributed ledger.
While talking about transactions, you must be thinking about security. Right?
Well, blockchain transactions use the safest methods – cryptography – to maintain a secure network and verify each transaction.
Cools Facts about Ethereum
- Ethereum is the same as Bitcoin as it offers a decentralized “Peer-to-Peer” network. Regardless of your background and location, you can join this network anytime. Modern data encryption and consensus algorithms are also used in it.
- Ether is the second in the ranking of market capitalization.
- Many software companies consider Ethereum the crucial blockchain project as DApps & Smart Contracts is an extensive adoption of blockchain.
What are Smart Contracts & DApps?
A Smart Contract is a set of codes (function) and data (state) located at a specific address on the Ethereum blockchain. You can consider Smart Contract as the accounts of Ethereum, which can contain some balance and are used to send transactions on the network. But, it doesn’t mean that a user can control them. The accounts and transactions work according to their programming. A Smart Contract could include rules, which are automatically enforced via the code.
DApps or Decentralized Applications is not like any regular app which works on a client-server model. DApps are peer-to-peer applications in which there is no single entity or server, which controls the application. DApp uses blockchain for data storage and processing. A Smart Contract is used to implement the blockchain. The UI (User Interface) of DApp is created by a traditional website model. DApp and traditional software development are the same, provided the blockchain facilitates the computation and data.
Pros of Ethereum
A Huge spectrum of functionality
Apart from digital currency, Ethereum is the best platform to process different types of financial transactions, execute smart contracts, and store the essential data.
Ethereum is a tried-and-true network that has been tested and rectified through all these years of value trading and operations. It’s a humongous global community and ecosystem in cryptocurrency and blockchain, which is increasing day by day.
Holistic Innovation Approach
The community of Ethereum developers is constantly improving the network. As the popularity of Ethereum is growing rapidly, it has become crucial to provide the safest environment to users for developing applications. It can be done when the older version is replaced with the new one.
One of the biggest advantages of Ethereum is that the decentralized network includes no involvement of intermediaries ( for example, lawyers who write & interpret the contract or third-party web hosting services).
Cons of Ethereum
Increasing transaction cost
As the popularity of Ethereum is growing, it’s transaction cost is increasing as well. In February 2021, the transaction cost of Ethereum touched $23/transaction.
Ethereum has no lifetime limit on the numbers of coins, but it does have an annual limit of releasing approximately 18 million Ether/year. The chances are that Ethereum – as an investment – might work as a dollar but less appreciated in comparison to Bitcoins, which has limited lifetime numbers of coins.
Could be Difficult for Developers
While migrating from centralized processing to decentralized networks, developers might find it a bit difficult to build applications on Ethereum. They might need some time to bind the pace with this programming language.
Ethereum is the dawn of the software Development industry. By implementing blockchain networks into app development, one can establish the safest and reliable transaction platform for diverse users who don’t have to rely on centralized servers or entities anymore.