In laymen terms, Ethereum is a public, open-source, Blockchain-based distributed software platform that allows developers to build and deploy decentralized applications. It is a blockchain-based system which uses Ether(ETH) as cryptocurrency to act as a unit of value used in it’s own complete programming languages, Solidity and Ethereum Virtual Machine code(EVM) to empower ‘smart contracts’(SC) or Distributed Applications(dApps).
- Potential to be the platform for next generation distributed apps (dApps)
- Well established development community
- Planned to move to Proof of Stake to reduce energy usage of validation
- Very large scalability challenge
- History of problems in some high profile smart contracts/dApps
- Many competitors with potential to overtake platform
DEVELOPMENT TEAM: It requires a huge effort in order to implement large architectural modifications for aligning with the political process and larger ecosystem, but, Vitalik and the development team have a prospect solution to develop, test and form many complex aspects without needing a hard fork.
COIN SUPPLY: As Ehtereum is on tranisition with more changes to be deployed, the shortage of ETH is likely to incur impacting the price. As a result, hike on the price of the currency is expected.
COIN VALUE LINKED TO SUCCESS OF BLOCKCHAIN PLATFORM: Since the transaction fees are directly related to the load of the network and it’s expansion, the increase in Ethereum transactions will promote it’s efficient use among participants, thus growing network and capacity resulting on long-term stability.
STRENGTH OF THE COIN ECOSYSTEM/BLOCKCHAIN: Since several other applications sit on top of Ethereum, the security layer of each of the dApps help significantly on resisting any vulnerabilities and mistakes. But, since it’s a dependent protocol, a poorly architected applications may get exploited miserablely.
UNDERLYING TECHNOLOGY/FUTURE PROOF: With the feature of programmable Smart Contracts(SC) and dApps, the proximity of applications that can be built is very high making it to sustain on future.
ADDRESSABLE MARKET: Ethereum provides a standard platform for several kinds of applications, some of these have not been conceived.
PUBLIC INTEREST: Ethereum has very high public interest because of huge interaction on development community and also it being correlated to Bitcoin.
SCALIBILTY: Low scaling is a huge risk as this will create high transaction fees and slower confirmation times, but, different scaling solutions both in on-chain and off-chain are being pursued to enable Ethereum to sustain the load of many applications and smart contracts on the network.
PROMINENT INVESTORS/BACKERS: With the devoted developer community, there has been huge interest of investors like Microsoft, Intel, JP Morgan and so on for Ethereum blockchain.
LIQUIDITY AND VOLATILITY: Even though Ethereum is the second highest market capitalization after Bitcoin, it’s liquidity is lagging which may be because the portion of ETH is locked on smart contracts and isn’t transacted on a daily basis.
Ethereum has not yet fully capacitated it’s potentials compared to it’s relatively large market capitalization. So, in a diversified digital asset portfolio, ETH value will be more appreciated and has more potential than other.