Decentralised transactions are one of the many benefits of cryptocurrency. Users can make secure, reliable transactions from user-friendly crypto wallets. The result is a payment system that is revolutionising the payment landscape.
But what about Ethereum? What are the unique crypto advantages of Ethereum? Why is this cryptocurrency network so well suited to making and receiving payments rather than just a vehicle for investment? Read on to discover more.
The network is reliable
Ethereum operates a decentralised network and is immune from any external or third-party control. This means there is no maintenance downtime, no risk of interference, and no danger of fraud. All of these things are a few of reasons why so many use Ethereum as a payment and transaction system.
Constant development of the Ethereum blockchain
One of the cons of Ethereum is that transactions are not immediate. However, neither is Solana, XRP, or other cryptocurrencies. When developing new currencies, the time taken to settle a transaction is one of the most important factors. Currently, Ethereum is able to handle double the number of transitions than its market-leading rival, Bitcoin.
Ethereum is moving to a proof of stake consensus mechanism that will allow it to process a higher number of transactions faster per second and significantly reduce carbon emissions caused by miners validating the network under its current proof of work framework. Through the continued innovation and development of the Ethereum blockchain, Eth has become the second biggest cryptocurrency by market cap.
The potential of Ethereum
Ethereum is a little different to competing networks such as Bitcoin. It is based on a smart contract system that can support a wide range of different transactions and decentralised applications. This means Ethereum can be used to pay for a wide range of different assets via the blockchain — rather than simply being limited to Ether-for-Dollar trades.
This leads to significant Ethereum potential, which opens doors for a growing number of transactions in the future. Users can harness smart contracts to complete transactions for everything from NFTs to real estate property over the blockchain, making Ethereum a far more interesting proposition than Bitcoin.
Ongoing development for Ethereum
As discussed above, Ethereum features include a smart contracts system that developers can harness as they create their own inter-connected networks and platforms. This means the potential of Ethereum is only going to increase in the future.
This is great news for investors looking for key Ethereum advantages as they make payments. With more integrations and support for a diverse range of different coins and value sources, Ethereum represents an exciting environment for payments.
Remaining aware of the pros and cons of Ethereum
While there are many benefits of Ethereum as a payment and transaction platform, users still need to be aware that there are pros and cons. Ethereum is already widely used for transactions across the world, but this does not mean the network does not have its own negative aspects. Take a look at some of the points you need to remain aware of.
Ethereum transactions are not instantaneous
Ethereum still uses a proof of work consensus mechanism to validate transactions. During periods of high demand, this period can be as long as a few hours or even a few days. The transaction network is still reliable but cannot provide the instant transactions that bank customers are accustomed to.
This proof of work model may be replaced in the future by proof of stake operations. This will make transactions far faster, improving the experience for all users. It will also make the network more sustainable, reducing the amount of energy required to mine transactions.
Ethereum transactions are not free
You will need to pay to make transactions on the Ethereum network. To process a transaction, you are required to pay a ‘gas fee’ that is used to reward miners for validating transactions and supporting the Ethereum blockchain.
Unlike Bitcoin, where a small percentage of the transaction value is used to provide the reward, Ethereum requires a fixed fee for transactions. As a result, users who want to pay with Ethereum will need to anticipate the cost of gas fees in their transaction.
Ethereum pricing can be volatile
The price of Ethereum is volatile, just like the prices of all cryptocurrencies. Whether you are working with Bitcoin, Litecoin or XRP, there is the potential for the crypto value to fluctuate quickly, and this can be problematic.
Bear in mind that the dollar value of the Ethereum you use to complete your transaction could change quickly. In other words, it's possible that a $100 value of Ether could be worth substantially more or less than it was a day or month prior.
Invest in Ethereum and make payments using BTC Markets
With BTC Markets, you can buy and sell crypto on the open market. You can use your own crypto wallet to make payments and transactions via the platform and harness the power of Ether as a genuine alternative currency. Get started today, and set up your BTC account via our intuitively designed website. To learn more about how BTC Markets works, reach out to our team directly.
Grow your understanding of Ethereum and Ether transactions by browsing some of the most frequently asked questions below.
How many transactions are processed on the Ethereum network each day?
Ethereum continues to grow rapidly as a payment platform, handling as many as 1.1 million transactions per day in July of 2021. This is an interesting development for Ethereum, as this figure is actually far in excess of the daily transactions handled by the platform's major rival, Bitcoin. Transactions on the Bitcoin network reached only 250,000 for the same month.
While Bitcoin is still far more valuable than Ether crypto tokens, evidence suggests that users prefer Ethereum for making transactions. This brings Ethereum closer to the intended objective of the cryptocurrency project from its beginning — to become a viable alternative form of currency that can support transactions.
Where can I view my Ethereum transactions?
You can view your transactions in your crypto wallet. BTC Markets provides wallet storage features, where you can store your Ether tokens and other forms of cryptocurrency in a safe and secure environment. You can also use this feature to make transactions across the Ethereum network and manage your recently processed transactions.
Our wallet is designed to be easy and intuitive to use. You will be able to open and view a list of your Ethereum transactions, keeping track of incomings and outgoings across the network.
Can I track Ethereum transactions?
You can track the Ethereum transactions you have made in your crypto wallet provided by BTC Markets. As mentioned above, you can use your wallet to find a list of transactions you have already made, helping you to keep track of your activity and your balance in Ether or in any other form of crypto held in the multi-coin wallet.
You cannot track Ethereum transactions that have not been finalised, however. As the Ethereum network relies upon a proof of work model to write transactions into the blockchain, there is a latency period while transactions are being processed. The procedure is completely decentralised, and there is no risk of tampering or third-party interference — a key advantage of the blockchain and an important cryptocurrency benefit. Once the transaction has been completed, confirmed and written into the blockchain, you will be able to see this in your crypto wallet.
Who uses Ethereum to make transactions?
Many users across the world are already working with Ethereum to make transactions. In fact, far more people utilise Ethereum to send and receive funds than other high-profile cryptocurrencies, such as Bitcoin. This provides peace of mind to anyone who is considering whether to use Ethereum as a payment network.
Further peace of mind can be drawn from the fact that many banks and financial institutions have also put their faith in Ethereum. Institutions such as J.P. Morgan are already using a form of Ethereum to operate a payment network based on the crypto's smart contracts. This is an example of how Ethereum transactions are rapidly becoming part of the mainstream payment landscape.