The Ethereum blockchain network was the first to demonstrate that blockchain technology can do more than just maintain a currency. Decentralization on the Ethereum platform has countless benefits, and it will redefine the internet as we know it. Blockchain-based projects and applications are already outperforming legacy systems. In this article, we will go through the benefits of using this platform for blockchain solutions.
Ethereum has its own currency and transaction system, but it is also much more than that. This is the first system to introduce us to Smart Contracts. Ethereum’s blockchain platform offers certain advantages. Let’s find out what they are.
- Smart Contracts
A smart contract is an automated digital contract that allows users to carry out any transaction with value as long as they meet certain conditions. This could be money, property, shares of a company, or even gold.
The contract rules can be predetermined by the parties, and when every party complies with those rules, then the contract will automatically execute. Each party can remain anonymous, but the contract will be recorded in the public ledger for validation.
- Ethereum’s Virtual Machine
EVMs are quite complex to understand. EVM is effectively a co-relation system that integrates hardware and software to enable Smart Contracts. All Ethereum-connected machines (computers) can execute the untrusted code within the Smart Contract using this virtual machine. When the contract is fulfilled, the transaction is validated. In Smart Contracts, the EVM is used to resolve issues by the Turing complete software.
Blockchain developers can use Ethereum to develop decentralized applications, which is one of the main advantages of the Ethereum platform. Because it doesn’t have downtimes, it is perfect for storing objects that aren’t meant to be modified.
Various types of decentralized applications can be built on this blockchain platform. Due to the benefits they provide, the use of decentralized finance applications has recently gained popularity among the tech community.
DApps are primarily built on Ethereum’s blockchain platform.
- Secure protocols
Compared to traditional systems, Ethereum offers a more secure platform due to its blockchain security protocols. As the number of cyber-attacks increases, traditional systems cannot handle them. Therefore, most companies fail to protect their valuable information.
Ethereum, however, can make a real difference in this scenario. Data on the network is encrypted and secured using cryptographic hashing. The hash functions generated by DAP do not allow cybercriminals to reverse-engineer them; instead, they generate original ones every time, which makes it impossible for them to infiltrate the network. In our inion, this is one of the biggest advantages of Ethereum.
- NFTs (Non-Fungible Tokens)
Non-fungible tokens have become increasingly popular in recent years. A digital token is different from an art piece, image, video clip, or anything else that is unique. Ethereum pioneered the concept of non-fungible tokens. Over the years, Ethereum has greatly benefited the blockchain community by offering ERC standards for creating new token types. The ERC-721 standard was developed specifically for creating NFTs, which are unique and uninterchangeable tokens.
- Low transaction costs
A reduction in transaction fees is another benefit of the Ethereum blockchain. Ethereum offers significantly lower transaction costs than Bitcoin anywhere in the world. You only need a decentralized wallet to get started. Even though Ethereum Gas fees can go up from time to time, this platform is still convenient to use for sending money. The system usually takes 15-30 seconds to complete a transaction, so it’s the fastest option.
New technologies always contribute to new possibilities and Ethereum’s decentralized platform is already advancing. With the platform, contracts would be immutable and tamper-proof. In addition, the servers will never go down, so there will never be any downtime of the apps. It remains yet to be seen how far this technology will take us.