Ethereum is such a popular name that many believe it has been around forever. The truth is that it entered the crypto scene in July 2015, 6 years later than the first cryptocurrency, Bitcoin. It has immediately become the main competitor of Bitcoin because it introduced a new ecosystem that relies on decentralized applications and smart contracts. It has gained popularity quite fast, and numerous blockchain projects have taken inspiration from it.
As a cryptocurrency, it's not very different from Bitcoin; people can buy Ethereum with a debit card, trade it on exchange platforms, and use it to make purchases. However, Ethereum is more than a digital currency; it's innovative technology based on the blockchain and has introduced smart contracts for the first time, which was groundbreaking for the sector. Developers can build applications on Ethereum and gain rewards. However, they must know Solidity, the native programming language of Ethereum.
Before discussing why developers prefer to build apps on Ethereum, it's recommended to clarify the concepts of blockchain and Ethereum.
What is blockchain?
Blockchain sounds like a complicated concept when you don't know about it, but once you start researching its features, it's easy to understand how it works. It's a database of immutable records stored by many computers worldwide. All blocks are combined and secured through chain technology, making altering information impossible.
What is Ethereum?
Ethereum is a platform built on the blockchain, with its native digital currency and a programming language that enables app development. Ethereum is a distributed public ledger that verifies and records transactions and allows users to create, use, publish, and monetize all projects they develop on the platform.
Why do developers use Ethereum?
If you're interested in investing in Ethereum, you most likely know that the number of projects developed on the blockchain is growing rapidly. You might wonder what makes Ethereum the most popular platform for developing blockchain apps, considering there are so many other alternatives.
It guarantees highly decentralized security
Blockchain has made an impression among app developers because it promises to offer decentralized security, which means that cybercriminals cannot tamper with the records on the network. The digital signature, decentralization, consensus algorithm, and cryptographic hash features make Ethereum (which is based on the blockchain) a secure network from hackers' attacks.
Ethereum meets all developers' requirements for building apps because it asks users to digitally sign all transactions. All computers functioning in the Ethereum network have equal authority, so they store the same data. If a couple of computers get shut down, the Ethereum network functions unbothered.
Ethereum's decentralization, cryptographic hash features, and consensus algorithm prevent cyber-attackers from protruding on the network. For someone to interfere with Ethereum, they would need a massive amount of computing power, which is impossible to gather, impractical, and cost prohibitive. App developers who want to build projects on a highly decentralized and secure network find Ethereum the ideal choice.
Developers can use the Ethereum Virtual Machine to create DApps, cryptographic tokens, and smart contracts
As we stated earlier, Ethereum is more than a decentralized network that facilitates crypto transfer. Vitalik Buterin created it to integrate the Ethereum Virtual Machine, which allows developers to build and run apps. The developers use the platform to create smart contracts, which function like open-source pieces of code that allow users to complete transactions when particular conditions are met. Smart contracts transfer digital assets automatically when a set of predefined conditions are met.
Smart contracts are autonomous blockchain elements stored in the Ethereum ecosystem, so no one can interfere with them. Their execution is irreversible, so the users cannot change their minds once they are set. Developers code smart contracts to create cryptographic tokens like NFTs or standard tokens.
Ethereum Virtual Machine also enables developers to create decentralized apps, which are web apps that rely on smart contracts.
Ethereum is rich in resources for developers
Developers would build apps on any other platform if it would offer the same range of tools. Ethereum is a mature network that makes app development easier than using another resource. Here are some of the resources and tools developers find quite useful when creating Ethereum-based projects.
- Web3.js - Ethereum JavaScript API
- Solidity - a native programming language that enables smart contract creation
- Remix IDE - an IDE that helps developers create smart contracts
- MetaMask - software digital currency wallet that makes blockchain development easier
- Vyper - a native programming language based on Python that allows for smart contract development
- Ropsten - a test network that allows developers to test smart contracts
Organizations can create enterprise blockchain networks on Ethereum
Individual and institutional developers can use Ethereum to create projects. Ethereum, similar to all the other blockchain-based networks, is public, and therefore anyone can use it. Enterprises take advantage of the public blockchain because it helps them comply with data privacy regulations. They can integrate a modified version of the distributed ledger to meet their unique needs.
Ethereum is a popular network
Ethereum is well-known in the sector for its many features, and it has gained the public's attention since the beginning when it promised to offer more utility cases than Bitcoin. Traditional app developers find it challenging to compete against those using blockchain technology because innovative technology provides more significant benefits. Blockchain app developers acquired Ethereum coding skills to access the network. The demand for Ether also motivates developers to turn to this network because the chances for Ethereum to fail from existence are lower than that of another cryptocurrency.
Final thoughts
App developers have been among the first to take advantage of blockchain and Ethereum's numerous benefits. With their upgrades, businesses and individual developers have become more interested in harnessing their power for use cases. Ethereum has made a name for itself in the app development world, and the fact that it's the second-largest blockchain by market capitalization could only help it. The network will thrive as long as investors turn to Ethereum when they diversify their portfolios.
