The question, which numerous people ask, is what’s the difference between modern cryptocurrencies? Why should we choose this very option? Well, I can’t answer the item until I make sure you understand what ETH is and how this coin works. The rest comes of its own accord.
First, ETH is the BLOCKCHAIN-based public network. And unlike BTC, which tracks the obtaining of the coin, the target of Ether was to run the programming language of any app that is currently decentralized.
Once you are interested in interesting points, let me tell you that the company was split into ETH and ETC (Ethereum Classic), when someone took away a great part of DAO’s funds and transferred them to another account. That is why do not be surprised when seeing both titles next to each other.
Essential Part of Ethereum Node
To put it simply, Ethereum aims to become the ‘World Computer’, which in its turn would decentralize the existing model of client-server. Though, some argue that the main point is in democratizing. With this kind of digital coin, the servers and clouds are relaid by numerous so-called ‘nodes’.
That is done by volunteers all over the worlds, that is why, the computer can become global. The node itself is a point that takes an input, make an operation and presents an outcome. The whole network is a gathering of such nodes, which run by any eager.
Not taking into account the designed security mechanisms and complex protocols, the Ether node is represented in 3 factors as: blockchain part, the virtual machine and peer-to-peer network. Yeah, I know, too many words without explanation. Bear with me a little bit, and you will find the answers below.
ETH Blockchain
The name of this chain technology describes its sense in the best way. This is a quantity of blocks, which are connected between each other. Once the one of these block is broken, each of the continuators will get broken too. All of them include a great quantity of transfers with some block’s data which is previous one. Also, there is a current block’s proof-of-work.
As they are connected with each other, it is quite hard, if not to say impossible, to break this chain. The whole situation of breaking means to make up a box, and doing it so that the others stay whithout any changes. Anyway, such kind of blocks won’t be legitimate.
Peer-to-Peer Network
This network is formed by Ethereum nodes, which are connected to other ones. They broadcast these blocks and transfers to the NW (network), and get another transaction, then boxes from it. This full node has also another responsibility, it is to synchronize the actual status of this chain with the rest of system.
Test MainNet are the formal ETH networks, whichusers tend to refer to. Also, in comparison with BTC, the chain system of Ether is really complicated. That is because on ETH, it has a possibiity to implement the codes of arbitrary right into the smart contract form.
This is a type of acc, which includes a special code usually written by blockchain developers. It is called a bytecode, and it should be executed by a high-level language. Without execution, the hosting in totally useless. That is how we come to VM.
Virtual Machine
As you understand, Ethereum owns its personal VM, which target is to execute the code of smart contract. With its help, anyone can run any programs without being an expert in the programming code. Using the VM, the process of developing blockchain apps becomes more easier and faster.
The whole point is that there is no need to implement a totally new chain of blocks for every new app. Instead, Ethereum VM makes it possible to make up probably thousands of various apps on only one platform. Simple and plain operations are available for everyone.
Pros and Cons of Ethereum
As everything, Ethereum also has its positive and negative sides. Let us speak about good things first. The digital coin is totally unalterable, it means no third body can involve any change ups to the data. Due to the main principle, the censorship is totally impossible. That is how you can say that it is safe, cause it’s staying away from corruption.
Having no central checkpoint, applications can’t be hacked or go under fraudulent activity. So, everything here is secure. What is more, you will never meet downtime. The applications work properly and provide no errors. That is an item of stability and assurance of your convenience.
No one is perfect and ideal. That is why all smart contracts are as good as the people who create them. Once they make some mistakes, they will also occur in the codes. Such bags can lead to unfavorable effects, which won’t be so pleasant for users.