Ethereum network allows developers to develop any kind of application with any programing language and therefore it can be called an open source technology Ethereum is similar to bitcoin in the fact that it also distributes public blockchain network, but Ethereum also stands out from bitcoin in the sense that it focuses in running the programming language for any decentralized application. While bitcoin blockchain technology focuses on tracking owners of digital currency known as bitcoin. A good definition video of what ethereum is and how it works.
Within the Ethereum Network, a kind of cryptocurrency is used for transaction fees and services among application developers which is called Ether. Ether is used to fuel the entire network within this blockchain technology. So instead of miners to mine bitcoin, they actually work to earn ether.
Before the development of Ethereum, bitcoin and other cryptocurrencies where design to operate as peer-to-peer digital currency.
Developers at that time noticed that there were a lot of limitation and were faced with the problem of either expanding the bitcoin functionality and other related applications or creating a new blockchain application. And this proved to be time consuming and very complicated.
Vitalik Buterin inventor of Ethereum felt that the developers of bitcoin were approaching this limitation they faced the wrong way. He said that they were going after each application; they were trying clearly to support each in sort of Swiss Army knife protocol.
Ethereum Virtual Machine is a software that runs on the Ethereum network. This Virtual Machine simplifies the creation of blockchain applications and also makes more efficient. Ethereum also accommodates the development of thousands of application on one single platform.
Pros of Ethereum
- Ethereum network uses cryptography to secure its platform. Applications developed on this platform are well protected against hackers and fraudulent activities.
- Application on Ethereum platform never shutdown as there is zero downtime.
- It is Immutability in the sense that no third party can make changes to its data.
Cons of Ethereum
- Code bugs can lead to unintended adverse actions
- There is no efficient way in which an attack or exploitation can be stooped without rewriting the underlying code and obtaining a network consensus.