November 21, 2018 at 22:19
21 November 2018 at 22: 19 & nbspUTC
It is no secret in the blockchain world that Ethereum's blockchain is the network of choice for most companies and developers of decentralized or decentralized applications. It has become rather the market leader when it comes to hosting a wide range of use cases and even though its ETH or Ether cryptographic token has fallen to third place in terms of market capitalization recently, Ethereum's reputation remains largely not stained by the role it plays in making blockchain accessible to a large number of different businesses and developers. Of course, it enjoys some professionals. However, with the advent of new entrants, some of its inherent flaws are coming to our attention and they do it to the list of its cons. In this article, let's take a look at the main pros and cons of Ethereum.
You can also read: 10 differences between Ethereum and Ethereum Classic
Ethereum's broad acceptability and reliability throughout the crypto world and in the market in general derives from the many merits of this blockchain network. Let's have a look at what they are:
1. The highly visible and immensely competent leadership:
The founder of Ethereum Vitalik Buterin finds frequent mentions in cryptic titles and guides much of the clarity of the blockchain network vision. Its active participation in the world of Crypto lends a lot of credibility to the network it has developed. In addition, the competent community of developers such as Lubin or Zamfir adds to the reliability and reputation of this network.
2. The powerful functionality of the Ethereum blockchain:
The very fact that Ethereum supports elements like blockchain smart contracts, dApps and decentralized autonomous organizations (DAO) makes it a highly functional blockchain. Furthermore, it established a point of reference in the ICO token world by introducing the ERC-20 standard tokens. The great tokenization, the functionalities that make it useful in different fields such as game and forecast markets, are factors that make Ethereum so great.
3. Ethereum has clarity in terms of regulatory obligation:
How the US Securities and Exchange Commission or the SEC have decided at the beginning of this year that Ethereum does not count as a guarantee according to Howey's Test (intended to determine the criteria to be met for a class of activity that is called "security"). This means that it is free to respond to the regulatory requirements for securities.
4. Ethereum is supported by major venture capitalists:
The big names in the VC market (venture capitalist) have given their support to the Ethereum blockchain. Among the most notable, there are Union Square Ventures, the founder of AngelList Naval Ravikant, Andreessen Horowitz and Fred Ehrsam, the man who co-founded Coinbase, the leading cryptocurrency agency.
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Ethereum has faced some problems lately and constitute demerits or cons of the Ethereum network. Let's have a look at what they could be:
1. Excessive dependence on the fame of Buterin:
Buterin is a huge name in the cryptic world and even the least mention of his death or some news concerning him affect the position of Ethereum in the market. In fact, we saw a $ 4 billion ETH sold after a death grab for Buterin. This excessive dependence on a man could have a rather negative influence on Ethereum.
2. Delays the transition to the stake test confirmation protocol:
The passage of Ethereum to the consensus protocol of the PoS has long been at stake and the crypto community does not see the hour. A long delay in the process is affecting the speed and reputation of the network.
3. Emerging Competition:
Many new competitors are emerging in the market, which are basically doing what the altcoins have done to Bitcoin. They are taking lessons from the defects of Ethereum and they improve their functionality and do their best to create a potentially better product even than Ethereum itself. In our guide to the NEO coin, we have shown how the underlying network to the currency is already called "the killer of Ethereum" for this reason.
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The best Altcoins to invest in, in 2018