Ethereum is a blockchain network that is often talked about in tandem with bitcoin, even though both of them are different from each other. Ethereum is a software that works on blockchain networking in which users can interact with other people and the currency used on Ethereum is called Ether (ETH). Ethereum does more than bitcoin and there are many advantages to it. In this post, the advantages, disadvantages of Ethereum would be discussed briefly.
Advantages of Ethereum
There are multiple advantages of Ethereum and the first one is that it is a wide and large network that has much more potential than the others. As it offers a large network the users and the connection between the users is extensive enough. The users of Ethereum trust it and it is definitely the best tried and tested software that is providing wonderful services and options. Secondly, unlike other cryptocurrencies, you will experience that Ethereum offers a number of options to do a website and is prosperous for the developers as they can create news websites and applications using the Ethereum cryptocurrency.
Also, Ethereum provides decentralized applications that are called dApps and it brings a wide arena for the users. The developers on Ethereum are trying to bring innovations for improving their network as with time the demand for Ethereum is incessantly increasing. Linking the idea of decentralized apps with the third-party intervening role is significant as Ethereum does not let users into the hassle of lawyers, cooperation, etc. who will do the extensive paperwork and consume the time unnecessarily. The users can simply make their payments and transactions on Ethereum and it will be the safest and secure system for them.
Disadvantages of Ethereum
With a lot of advantages, Ethereum has a bit of disadvantage as well. First of all, the transaction costs of Ethereum are rising constantly and the amount is very hefty. The transaction system of Ethereum is difficult from Bitcoin as Ethereum has the policy in which the individuals who made the transactions are required to pay the fee cost as well which is called ‘gas fee’, also required to keep the network running. In February, the cost per transaction was $23 which has risen to $30 as of now.
Another disadvantage of Ethereum is the inflation in Crypto. Ethereum sets the limit to release 18 million Ethers per year, but if we talk about the lifetime limit then there is no such potential and limit to it which can de sometimes draining for the investors. Talking about the developers who have worked on the centralized applications might get it a bit difficult to start from and take it as working on centralized apps and decentralized apps (dApps) are two different paths. Lastly, the future of Ethereum is unknown and uncertain. Even though it is very popular and works on a large scale, there are yet many pieces that hall to fall in place.