When it comes to cryptocurrencies, Ethereum is second only to Bitcoin in terms of popularity and market capitalization. But can we trust Ethereum? Let’s take a closer look.
Ethereum was launched in 2015 by Vitalik Buterin, a Russian-Canadian programmer. Unlike Bitcoin, which is intended to be a digital currency or “store of value,” Ethereum is a decentralized platform that runs smart contracts.
These smart contracts are applications that run exactly as programmed without any possibility of fraud or third-party interference.
Because of this, Ethereum has often been described as a “world computer” that could one day replace centralized servers and cloud computing providers like Amazon and Google. While this may sound far-fetched, Ethereum has already been used to create decentralized applications (dapps) ranging from digital wallets to prediction markets.
So far, Ethereum has been relatively successful. The platform is currently used by millions of people and its native currency, ether (ETH), is worth over $100 billion.
However, Ethereum has not been without its problems.
In 2016, a major hack exploited a flaw in a popular ETH wallet called Parity, resulting in the loss of over $150 million worth of ETH. And in 2018, another hack resulted in the loss of over $50 million worth of ETH from the cryptocurrency exchange Coinbase.
These hacks have led some to question the security of Ethereum and whether it can be trusted. However, it’s important to note that both of these hacks were the result of flAWS in specific wallets or exchanges rather than the Ethereum platform itself.
In other words, if you store your ETH in a secure wallet and don’t use sketchy exchanges, your funds should be safe.
Overall, Ethereum has proven to be a reliable platform with a strong community behind it. While there have been some security issues, these are largely due to third-party wallets and exchanges rather than the Ethereum platform itself.
As long as you take care to store your ETH in a secure wallet and use reputable exchanges, you should be able to trust Ethereum.