Since its birth, a series of myths have been woven around this Cryptocurrency. Decentralized operations have acquired a very high value for banks and other financial institutions, providing new concepts of security and financial transparency, which has represented a change in the way of doing business.
In the previous article entitled the birth of Ethereum technology we talk about Ethereum technology as the digital platform that is based on Blockchain technology. Its creator, Vitalik Buterin, had as its main objective to convert it into a new open source technology based on the Blockchain, this allows any developer to create and run decentralized applications.
- 1 Myths about Ethereum
- 2 Decentralizing means distributing
- 3 Ethereum has no errors or failures
- 4 Ethereum is protected against attacks
- 5 Ethereum is more vulnerable to attacks than other cryptocurrencies
- 6 The collusion of the pools is imposible
- 7 Wallet owners have private access to their funds
- 8 Impossible to manipulate the Ethereum network configuration
Myths about Ethereum
Using Blockchain technology enabled the creation of a network, where all users are equal and the information is distributed on many computers around the world. The study conducted in February 2018 by Emin Gun Surer showed that Ethereum is more distributed than Bitcoin with more nodes in the world, and this shows that the Ethereum network is more decentralized than its older brother Bitcoin, however, this does not He has freed him from creating a lot of misinformation around him. Here are some of the most common myths about Ethereum.
Decentralizing means distributing
Vitalik Buterin, founder of Ethereum explains what he considers decentralization, as one of the most frequently used words in the cryptoeconomics space, and is often considered a real reason for the Blockchain. Vitalik believes that decentralization is a fundamental Blockchain concept, vital in protecting networks from problems such as failures, collusions and attacks.
Ethereum has no errors or failures
Like any open source cryptocurrency, Ethereum is not necessarily infallible, however, since its creation, it has been tried to shield it against the different attacks that may exist. Its foundation in smart contracts ensures that it is the users themselves who are responsible for protecting the transactions they are making, and that is why one would think that nobody wants this to fail.
Ethereum is protected against attacks
There are three vital components that form the basis of this characteristic, if one fails, the system could become a decentralized entity: fault tolerance, resistance to attack, and resistance to collusion as it is difficult for Participants in decentralized systems collude to act, so that they benefit them at the expense of other users, while governments and corporations collude to benefit themselves, harming other customers.
Ethereum is more vulnerable to attacks than other cryptocurrencies
Hand in hand with the previous point, it can be said that resistance works best in systems based on participation test algorithms (PoS) instead of work test (PoW) in which the entire Ethereum Blockchain operates. It is the reason why Ethereum is changing to PoS this year. The vulnerability to Ethereum attacks was known in September 2016, through a series of DDoS distributed denial of service attacks, caused a significant delay in the operation of the nodes, Ethereum developers were unable to handle the attacks DDoS and this is what has caused this myth.
The collusion of the pools is imposible
Pool operators can include only transactions that are interested in processing in the blocks generated. Therefore, one of the objectives of modern mining that many pools have is to give the distributed generation of the blocks. So currently, 60% to 70% of the total network hasrate belongs to only four or five of the most popular pools. This is applicable to any Cryptocurrency in which its complexity has exceeded certain limits, which makes mining alone difficult. What seemed somewhat distant and exaggerated, the risk of a total centralization of mining.
Wallet owners have private access to their funds
One of the characteristics of Cryptocurrencies is that no one can make any transaction with funds that do not belong to him. In the token system it is a guarantee of this, this is done through the following scheme: each agent must have the ability to allow the transaction to be carried out and thus comply with the requirements of the previous agent, that is, have the correct private key and avoid double transactions or theft.
Impossible to manipulate the Ethereum network configuration
In 2017, the online game Kriptokitties occupied more than 13% of Ethereum traffic, which made it called Ethereum’s Killer App. The threat of applications should not be underestimated. Developers control both the game and smart contracts. Expenses increase in price gradually and each contract can be suspended at any time, for developers this is a security measure in case of piracy in the accounts owned by the team. There is the possibility that the owner of the key of the main account can freeze the entire game and therefore, all user accounts. Finally, the smart contract can be modified by developers and have a closed code.
What do you think about this topic? Did you know any of these myths about Ethereum?
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