Ethereum (ETH) is one of the most recognizable names in the cryptocurrency world, but it is much more than just a cryptocurrency. In this article, we discuss four reasons why Ethereum is so much more and why it is a revolutionary platform that can completely change the way we look at technology and finance.
1. Smart contracts make Ethereum smart
One of the most salient features of Ethereum is its ability: “Smart Contracts“. These are self-executing contracts where the terms of the contract are written directly into the code. This makes it possible to automate transactions and agreements without the need for intermediaries, increasing efficiency and reducing the risk of fraud.
Suppose it were possible to conclude your rental agreement in the form of such a smart contract. This would mean that the rent is automatically transferred to the landlord every month. Amount, date and time are all encoded in the smart contract. This is an advantage for the landlord, as he does not have to worry about whether you transfer the money every month.
2. Decentralized Apps (DApps)
Ethereum provides a platform for developing decentralized applications, also known as DApps. These apps work on the blockchain and are not owned by a single entity. This means they are more transparent and censorship-resistant than traditional apps. For example, Google or Apple can decide for themselves whether to remove an app from their app store. This is not easy with DApps.
3. DeFi: Decentralized financing at ETH
Another major application of Ethereum is in the world of decentralized finance, or DeFi. These are financial services such as loans or insurance that are provided on the blockchain without the involvement of traditional financial institutions. This can make financial services more accessible and cheaper.
However, this also entails risks. A bug in the code running such a financial application can cause a lot of damage. For example, crypto news recently reported that more than $1 billion in crypto has already disappeared this year, partly due to so-called exploits.
4. NFTs: unique crypto images
Ethereum is also the platform behind the explosive growth of non-fungible tokens (NFT’s). These unique digital assets can be anything from works of art to collectibles, and they are verified by the Ethereum blockchain. This has enabled an entirely new market for digital property and art.
After the massive explosion that saw the crypto collectibles soar in value, the market went into a nosedive. Trading volume fell and values also took a nosedive. In addition, the US regulator behind the Ripple lawsuit also announced that it had launched an attack on NFTs.
Why Ethereum is more than a crypto
Ethereum is much more than just a cryptocurrency. It is a versatile platform that has the potential to transform multiple aspects of our digital and financial lives. From smart contracts and DApps to DeFi and NFTs, Ethereum continues to open up new possibilities beyond simple financial transactions.