What are the benefits of Ethereum?

[thomas elton]

Ethereum Technology
Like any other cryptocurrency, the foundation of Ethereum is its blockchain technology. However, instead of performing only peer-to-peer transactions, Ethereum technology can also be used to run a decentralized application.
Such applications are called DApps. Since these applications contain code which runs on a decentralized network, the activity is visible for all to see, and is not particularly owned by anyone.
Operating this network requires energy in the form of the Ether token, which ‘miners’ - like those of Bitcoin - engage in Ethereum mining to secure the network. They earn the ETH cryptocurrency for their efforts, which is why the practice is also called ETH mining.
Ethereum Transactional Process
Ethereum works by the way of Smart Contracts. According to Coindesk, the concept of Smart Contracts was developed in 1993 by Nick Szabo.
In a Smart Contract, the user and receiver agree on certain conditions, which are input in the form of codes, and the Smart Contract is executed according to the given data. This is a very important aspect of DApps, as it ensures that during the transaction process, no part can cheat the other. As soon as the conditions are met, the transaction takes place.
According to CNBC, the Enterprise Ethereum Alliance has support of about 86 firms, including Toyota, Merc, Rabobank, and John Hancock Financial, which is going to use Ethereum to keep a track of whether the KYC-AML (Know Your Customer-Anti Money Laundering) guidelines are being followed or not in wealth management. Not surprisingly, the extent of usage of Ethereum blockchain stretches beyond financial purposes. As stated by the Fortune Magazine, Walmart is using it to track how pigs are moving from China to America.

Ethereum’s transparency and the elimination of the need of middleman are what makes it attractive to financial institutions and other corporations. The financial records of the company can be placed in the form of blocks and will be recorded in their totality, and be available to all employees so as to be able to verify it, instead of being housed secretively with a single person. The records entered in the ledger cannot be changed, and be entered permanently.

Most importantly, the Smart Contracts, which are an integral part of the Ethereum network, cannot be changed by either part once they have been approved by the parties involved. This ensures timely and correct transaction, with, no loss to the people involved.

Another of Ethereum’s major attractions is the speed. The block time of Ethereum is 12 seconds, much faster as compared to 10 minutes of BTC. This allows for faster mining and transactions.


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