Measures absolute and relative price fluctuations over several time frames and other variables.
Calculates returns in comparison to moving averages and other factors.
Measures the ability to scale, upgrade and other technological weaknesses or strengths.
Evaluates public acceptance, participation of developers and other key factors.
On the whole, Ethereum is less volatile than bitcoin. Because of this, Ethereum provides a low risk and a relatively low reward option. This cryptocurrency is probably the best option for investors who are interested in the long play.
The overall success of Ethereum is dependant on the adoption of the peer-to-peer smart contracts. Ethereum made huge wins at the beginning of 2017 when thirty big banks and tech giants built business-ready version of the software behind Ethereum. This cryptocurrency offers stability for crypto investors.
The concept of a smart contract is brilliant. In the past, many of the contracts that people and organizations needed to create required supervision of a judge or a lawyer. This process is typically long, expensive, and complicated no matter whether it happens in the private or public sector. With that being said, the platform has been controversial and resulted in diverging blockchains.
The main weakness of the Ethereum network lies in its code. As of May of 2016, independent reviews have established that some parts of the Ethereum code had 50-100 bugs per 1,000 lines of code. While there is no such thing as the perfect code, code by Microsoft, for example, contains about 1 bug per 2,000 lines of code. This means that contracts on the Ethereum network need to be written very precisely. The state of Solidity is something that the Ethereum network will need to significantly improve moving forward into the future.
One indication that speaks volumes to the Ethereum platform is the fact that many ICOs are choosing the Ethereum Network platform. This shows the trust developers have in running their businesses and applications within the Ethereum platform. According to Ethereum, it can be used to “codify, decentralize, secure and trade just about anything.”
The DAO hack, which took place in June of 2016, has left some developers weary of fully trusting the Ethereum platform. This hack led to a hard fork and the creation of Ethereum Classic (ETC).
Peer-to-peer smart contracts are what set Ethereum apart from the other cryptocurrencies. It enables people to code and enact contracts without third parties. Smart contracts on the Ethereum network use Distributed Autonomous Organization (or DAO). This new technology is exciting but will take some time to become widely used. When you consider the features of the Ethereum network it’s obvious why companies are running their ICO on the Ethereum platform.