To stay ahead of the competition, industries need to be nimble and have an adaptable system architecture. Ethereum is one such blockchain platform built with this in mind.
That’s why we have put together this post on Ethereum’s features – outlining some of its benefits and pointing out some potential pitfalls in what otherwise seems like an advantageous industry change. Some advantages and disadvantages can be amplified or mitigated in different industries. So, let’s move on to its features.
Ethereum is scalable:
The Ethereum network has been likened to “an internet of things” because it’s open source, accessible, and nothing can be taken down from the computing power it runs on. The system works so that no single institution can control the network. It also allows for a high degree of transparency, allowing users to track all transactions transparently. Smart contracts help ensure that every transaction occurs as intended, which benefits both parties involved.
Ethereum is decentralized:
The Ethereum network undermines institutional control and gives permission-less access to new investors – worldwide! However, you cannot run an entire organization on the Ethereum network. Ethereum is flexible in that it can be customized to fit the needs of any project and organization. However, Ethereum’s decentralized nature means some inherent risks and downsides come with it. The most significant risk tends to be around security breaches. Because the network is open source, there’s a possibility that one malicious hacker could take down the whole network.
The solution to this problem is what many are referring to as “Ethereum-as-a-service.” Ethereum-as-a-service allows a centralized group or company to host the infrastructure required for users to access Ethereum’s tools. It has become an essential aspect of blockchain development because it’s a standardized model for building such applications.
Ethereum is cost-effective:
One of the most significant cost-saving benefits of Ethereum stems from its cost-effectiveness. Ethereum smart contracts are much cheaper than a team member’s salary, for example, and can work for at least five employees. In addition, when designed correctly, a smart contract can execute a particular business process without error and without having to be overseen by anyone.
Standardization also means people can quickly meet your organization’s needs by applying readymade solutions. In addition, due to its high degree of flexibility and access ability, more businesses can sign onto the Ethereum platform daily. Finally, it allows for greater collaboration between the parties involved, leading to tangible results and greater profits.
Ethereum is effective:
Ethereum smart contracts are a reliable solution to any business challenge. For example, many businesses depend on their supply chain for uninterrupted operations. Supply chains can be challenging to manage, but with Ethereum’s smart contracts, all that complexity can be eliminated by people. As a result, businesses will now be able to run supply chains more efficiently and with less chance of error. This solution also brings greater transparency to the supply chain, makes it more competitive in the marketplace, and offers better protection against fraud.
Ethereum offers the option of decentralized applications:
Ethereum allows businesses to operate more effectively. By offering decentralized applications, Ethereum enables a business to forge new paths by cutting out the middleman and working more cost-effectively. It also means that the customer can be more involved in their transaction and how it needs to be done. In addition, decentralizing transactions provides for greater accountability across all processes – because there are no longer any bottlenecks.
Ethereum is safe:
The transparent nature of the blockchain makes it very secure, and as we mentioned earlier, Ethereum smart contracts mean that transactions can occur automatically. It also means that there is no worry about whether or not a particular process will occur as intended because it will always occur as intended.
And depending on the parameters set, it can occur almost instantly.
Ethereum is open source:
It is important to note that every transaction and the smart contract will be visible to everyone, which is one of the greatest strengths of the Ethereum platform. However, this also means that many developers are working with and improving these processes, leading to greater trust and more efficient transactions.
Ethereum is adaptable:
One of the most incredible benefits of blockchain technology is the ability it offers businesses to optimize their operations cost-effectively. It implies that businesses can reach new markets quickly and securely. Ethereum makes businesses more efficient:
Another advantage of Ethereum is that you can quickly and securely send money or make transactions.
Ethereum has the makings of revolutionary technology. However, it’s still in the early stages of development, so a few things need to be worked out before widespread adoption can occur. For starters, security needs to be refined. Currently, it’s still possible for an individual with nefarious intentions to hack their way into a smart contract and damage or even take down the system. However, if people can solve this problem, there’s no reason blockchains shouldn’t replace many other outdated systems currently in place.
