Ethereum is a powerful, decentralized, open-source blockchain-based distributed computing platform featuring smart contracts. Ether is the cryptocurrency generated on the platform Ethereum as a reward to the miners.
Ethereum needs many elements, and the first element is the network of computers to process the transactions and to keep the shared database updated on a timely basis. The second element is the software that allows the developers to run ‘Smart Contracts’ on Ethereum blockchain with the help of programming language called ‘Solidity.’ One of the most significant features of this platform is that by leveraging hardware and software of the platform, the applications developed are decentralized, unstoppable, and lack the point of failure.
The hardware of Ethereum includes a network of computers that execute transactions and keep them in a shared ledger, which allows them to create a distributed database keeping a record of all the information shared in the network. Each computer network is called ‘Node,’ which validates the transactions and converts them into blocks, which is then broadcasted to the entire Ethereum network. Transactions on the platform contain both value and information. Value is expressed in Ether, and the information code can pass data to trigger the actions. Ethereum allows any type of transaction, whether in any form or shape. It includes any asset that you can think of. Ethereum works on a new programming language named ‘Solidity.’ The programs thus created are publicly available, and anyone can check what the programs can execute.
Ethereum is a decentralized computing platform with the capability of smart contract functionality. As it is decentralized, it cannot easily be hacked, and there is no chance of failure. Ethereum is an open project, which means anyone can use it. Ethereum also cuts down the middle man so users can directly interact with other users without having to involve the third party.
Ethereum is a platform on which anyone can create applications for data and value exchange. The technology is based on smart contracts that run on Ethereum. Smart contracts are the applications that run as programmed without any downtime, fraud, and third party involvement. There are four main pillars on which Ethereum’s smart contract work:
1. P2P networking – Users connect their computers together and form a network where they can exchange data without any server.
2. Consensus algorithm – These algorithms allow the blockchain users to reach to a consensus about the current stage of blockchain. Ethereum blockchain reached consensus in about 15 seconds.
3. Cryptographic tokens – It is a secure voucher system, where assets are built on the blockchains. These tokens can serve as payment for the services and goods.
4. Turing complete system – A Turing complete system is capable of running any program and is powerful to implement any program.
Smart contracts of Ethereum can be implemented by a web page, mobile app, or an application. Smart contracts are going to make traditional contracts outdated in the coming days.
If you are a crypto trader, you will keep on wondering about the future of the crypto market. In the last few years, the cryptocurrency market has seen several ups and downs. When it comes to the second-largest digital currency, Ethereum, we can say that the prospects in the future look good. Analyzing the future of cryptocurrencies is not an easy thing to do. However, few of the experts have made their predictions regarding Ethereum’s performance this year.
Experts believe that five years from now Ethereum network will be widely used for multiple purposes, which will raise its value tremendously. With the Bitcoin’s halving event happening on June 10, Ethereum and other cryptocurrencies will see a huge boost, which is because many people are eyeing this major crypto event. Bullish analysts are indicating the break above $2000 for the second quarter of 2020. The cryptocurrency will keep improving its position till 2025, and the value can go as high as $3844 per ETH.