Continuing on the road to blockchain, today we explore Ethereum, a Layer 1 protocol.

I won't tell you that Ethereum operates as a predictable yet incredibly expansive system, functioning as a state machine with no practical limits. Nor will I mention that this is due to its composition of a universally accessible singleton state and a virtual machine that executes modifications to that state, because this article would likely become too long with a thousand questions.

What I want to emphasize is that Ethereum is an open-source, globally decentralized computing infrastructure that operates by executing programs known as smart contracts.

With Ethereum, we encounter the concept of utilizing a digital currency called ether (ETH) to measure and manage the expenses linked to resource utilization during execution. Additionally, Ethereum employs the blockchain to synchronize and store changes made to the system's state.

It is the next step when we talk about the blockchain because it extends the capabilities of a traditional blockchain to the smart contracts.

Ok.. so... what is smart contracts?

For now, we will say that a smart contract is a self-executing computer program that handles agreements and transactions automatically.

For example, we can create a program that handles the sum of two numbers, such as 10 + 20, and stores the result, 30, in the blockchain.

Similar to what you do when you have 10 dollar in your bank account and you save an additional 20 dollars, but without the need for a bank. That's why it eliminates the need for intermediaries. 😉

At this point, you might be thinking that Ethereum is the solution to all the outsourcing problems in the world. However, in reality, there are many pros and cons that you should carefully analyze before proposing a definitive solution that will save the world. That's why I will now describe a few of them.

Pros:

• Smart contracts: Ethereum allows the creation and execution of smart contracts, enabling the automation of agreements and transactions without intermediaries, saving time and reducing costs.

• Decentralization: The Ethereum network is decentralized, meaning it is not controlled by a central entity. This provides greater security, transparency, and resistance to censorship.

Cons:

• Scalability: As the Ethereum network grows, it faces the challenge of scalability. The increasing demand for transactions can impact the speed and cost of operations on the network.

• High transaction costs: During periods of high demand, transaction costs on the Ethereum network can increase significantly. This can hinder access and usage of the network for those with limited resources or lower-value transactions.

  Technical complexity: Developing and interacting with the Ethereum platform may require a strong technical knowledge. For less experienced users or those without programming experience, fully understanding and utilizing Ethereum's functionality can be challenging.

• Vulnerabilities and errors: Although Ethereum is a robust platform, smart contracts can contain errors and vulnerabilities. This can lead to security breaches and fund loss if adequate security measures are not implemented.

• Energy consumption: Before the Merge, Ethereum mining and the execution of smart contracts require a significant amount of energy. This has raised concerns about the environmental impact and sustainability of the network.

There are more pros and cons but is up to you made you own research to know a little more.

So...Why do people choose Ethereum?

The primary goal of Ethereum is not to be fast or cost-effective, but to be trustworthy. Any program running on the Ethereum network is guaranteed to operate consistently across all locations and nodes. Data stored on the Ethereum network is accessible everywhere and remains permanent.

If you want to learn more, you can visit the official Ethereum website where you can find detailed information about the platform: ethereum.org

Or search for the local Ethereum community, which is usually found on Telegram, Twitter, Discord, and join them. Remember that together we can create a better world!