With special features and the tendency to spend money on virtual currency, Ethereum price may reach 4,000 USD in 2018.
Over the past few days, the cyber community has emerged to play the Ethereum CryptoKitties. This is the “virtual cat” created based on electronic money. At present, its total value is up to millions of dollars. However, the particular thing is that it is based solely on virtual currency Ethereum, not Bitcoin or Litecoin.
Ethereum is not like Litecoin or other virtual currencies developed over the last 4 to 5 years. It is based on a blockchain with improved technology. In particular, Ethereum can make smart contracts.
What is a smart contract?
Normally, in order to carry out an economic exchange contract, we need somebody standing in the middle to secure our credibility. However, with smart contracts this is not necessary.
It’s like an automatic algorithm that is executed when the given conditions are satisfied without any human intervention. Once the smart contract has been confirmed, it can not be changed or canceled. This means that there is no risk of fraud.
That is the greatest potential of this electronic currency. At present, Ethereum smart contracts are slowly being adopted by developers, especially in the field of betting and banking.
Ethereum is a new decentralized currency supported by the free market. It is not like the central bank’s money.
It is released through open source code that is implemented in decentralized ways on thousands of nodes. That code determines which node gets the ETH based on some of the calculations known as the proof of work (POW) code.
This is to demonstrate the amount of work done by the hardware or GPU. To be able to explain more clearly, it’s like digging coin through the code, then the miners will redeem the reward.
Decentralization also means that user data and transactions are secure. No one can lose the whole system or change it without the verification of others, here is the Ethereum minners.
The world’s second-largest virtual currency also has weaknesses. Although having a processing speed of about 15 transactions/second, it is much higher than Bitcoin. But it still does not meet the high demand.
In recent days, when the transaction is high, this currency has suffered a congestion. The user will take a long time to be able to confirm the transfer.
However, the founder of Ethereum, Vitalik Buterin is seeking to improve this. With the number of people pouring money into the coin market is increasing. This currency will get more benefit. Ethereum price is expected to reach 4,000 USD in 2018.