Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
In the Ethereum protocol and blockchain there is a price for each operation. The cost of running a smart contract on the Ethereum blockchain is called “gas”, and each operation within a contract requires a certain amount of gas to be executed.
The higher the gas price, the more “expensive” it is to run an operation on the Ethereum network.
The gas prices are dynamic and they are set by the miners who validate the blockchain. The miners are rewarded with ETH for their work, so they have an incentive to keep the gas prices low in order to attract more users and transactions to the network.
NOTE: Warning: Ethereum is not a productive asset and should not be considered a legitimate long-term investment. As with any investment, there is a risk of losing money. Investing in Ethereum is speculative and carries a high level of risk. You should never invest more than you are willing to lose. Prior to investing, please carefully consider your risk tolerance and financial situation.
The current gas prices are very high, and this is because the Ethereum network is congested. There are too many transactions trying to be processed, and not enough miners to validate them all.
This results in long transaction times and high fees.
So, is Ethereum a non-productive asset?
No, Ethereum is not a non-productive asset. The high gas prices are due to network congestion, and not because the Ethereum protocol is not working properly.
Once the congestion clears, the gas prices will go back down and users will be able to use the Ethereum network for its intended purpose: powering decentralized applications that can’t be shut down or censored by anyone.
7 Related Question Answers Found
Since its launch in 2015, Ethereum has become the second most popular cryptocurrency after Bitcoin. The Ethereum network allows developers to build decentralized applications and issue their own tokens. These tokens can be used to represent virtual shares, assets, proof of membership, and more.
When it comes to Ethereum, there is a lot of talk about its potential as a platform for anonymous transactions. After all, Ethereum is built on blockchain technology, which is famously secure and transparent. So does that mean that Ethereum is untraceable?
It is no secret that Ethereum has been on a roll lately. The native cryptocurrency of the Ethereum blockchain, Ether (ETH), has surged in value, reaching new all-time highs. This impressive price performance has led many to ask the question: is Ethereum a deflationary asset?
When it comes to cryptocurrency, there is no shortage of debate when it comes to whether or not Ethereum is a good investment. The truth is, there is no simple answer. Ethereum, like any investment, carries with it a certain amount of risk.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.
Ethereum, like all cryptocurrencies, has no intrinsic value. This means that it is not backed by any asset, such as gold or oil. Rather, its value is based solely on supply and demand.
Ethereum, the world’s second-largest cryptocurrency by market value, is a buy, say analysts at investment bank Goldman Sachs. In a note to clients Monday, the Goldman analysts said they expect ethereum to benefit from growing interest from central banks and corporations in using the cryptocurrency and its underlying blockchain technology.
“We believe Ethereum is benefiting from three distinct tailwinds: 1) a structural change in the cryptocurrency industry as crypto assets become more institutionalized; 2) a broadening set of use cases for Ethereum’s decentralized platform; 3) and technical improvements to Ethereum’s blockchain network,” the analysts wrote. The price of ether, the native cryptocurrency of the Ethereum blockchain, has surged more than 400% this year as corporations and financial institutions have shown increasing interest in using Ethereum’s blockchain to build new applications.
