Advantages and Disadvantages of Ethereum
The cryptocurrency appeared on the market back in 2015. Etherium soon gained the reputation as one of the most reputable tokens on the market. Ethereum blockchain projects have advantages and disadvantages.
It is important for every investor to understand well what are pros and cons of Ethereum projects. It will help to undertake the right investment decision.
Benefits of Ethereum blockchain
Ethereum cryptocurrency appeared shortly after Bitcoins. Today it is a fully decentralized currency. Major initial coin offering projects were developed thanks to Ethereum investment. Here are the advantages of this type of blockchain:
- It works differently compared to other cryptocurrency projects. In contrast to online projects with other types of cryptocurrency, ETH transactions do not require third parties. It is a full package service. Because of this, it is possible to conclude very complex agreements.
- Ethereum is not a self-locked system. It means other goods and services can grow together with ETH blockchain. It makes ETH grow continuously. More and more people start to invest in ETH.
- ETH is a well planned project. Cryptocurrencies are usually quite spontaneous. Many appear and die quickly. Ethereum is not the case. There exist a clear roadmap for the next 3-5 years. It helps stakeholders to understand how this blockchain will develop.
- It is an open system. It is a big advantage of this blockchain. Everyone from outside can join this project. It also makes it possible to develop this ecosystem and improve it.
- Unlike other blockchain projects, Ethereum transaction fees are lower. It makes it really beneficial to invest in initial coin offering projects using this crypto money.
- ETH has a huge support from a business community. Medium sized companies and large corporations help to improve the work of the system. Ethereum Enterprise Alliance and Hyperledger monitor the development of the project continuously.
These are the main reasons why stakeholders invest in the Ethereum blockchain. It is a project that will keep developing in the future. Putting money in ETH is a right investment decision.
Drawbacks of ETH blockchain
There are many stakeholders who are still sceptic about investing in cryptocurrency. There are many reasons for that. Here are the biggest minuses of ETH projects:
- It has too many platforms. It is the biggest minus of this cryptomoney. It is a platform that is a ledger, a smart contracts generator and much more. It makes this platform weak. Bitcoin, unlike ETH, is dedicated to complete only one function.
- There are can be some breakdowns in the system. In order to upgrade the project to a new level, this blockchain will switch from being Proof of Work to Proof of Stake. It is not easy to switch the system so easily. If this change does not go smoothly, the whole system can crash.
- There are not enough tutorials. It seems a small problem, but it is not. It is very hard for newcomers to start work with ETH blockchain. They can find only some basic information online. It is why many stakeholder can’t engage in this project.
These are the main disadvantages of this projects. These disadvantages stop people from investing in ETH.