What is Ethereum (ETH)?
Ethereum (ETH) is the second largest cryptocurrency in the world by market capitalization and one of the main blockchain platforms supporting smart contracts and decentralized applications (dApps). Ethereum was created in 2015, and unlike Bitcoin, which primarily serves as digital gold and a store of value, Ethereum is a programmable network that allows you to build and run financial services, games, NFTs, and other blockchain solutions. Ethereum has moved to a Proof-of-Stake (PoS) consensus mechanism, making it more energy efficient and scalable compared to Bitcoin.
How secure is Ethereum?
The security of Ethereum is based on several factors:
1. Blockchain technology – all transactions and smart contracts are recorded in a public registry, making them immutable and secure.
2. Decentralization – The Ethereum network is maintained by thousands of nodes around the world, eliminating central control.
3. Proof-of-Stake (PoS) mechanism – Ethereum no longer uses the energy-intensive Proof-of-Work system (like Bitcoin), instead transactions are confirmed by users who invest their ETH in the security of the network.
4. Smart Contract Security – Although smart contracts are a powerful tool, their vulnerabilities can create risks. However, experienced developers use audited and standardized codebases to minimize risks.
Why is Ethereum safer in the long term than Euros or Dollars?
1. Protection against inflation
• Euro and dollar central banks can increase the money supply indefinitely, which reduces the purchasing power of these currencies over time.
• Ethereum has a deflation mechanism – since the introduction of EIP-1559, a part of ETH is burned from each transaction, which over time reduces the total amount of available ETH, contributing to price growth.
2. The sovereign's control over his own funds
• Banks can restrict access to money, impose sanctions or even confiscate funds.
• Ethereum owners control their funds without intermediaries if they are stored in secure wallets (hardware wallets).
3. Ethereum as a global financial network
• Euro and dollar depend on government policy and economic stability.
• Ethereum is a neutral global network that allows transactions to be made anywhere in the world without being controlled by a single country.
4. Long-term price growth potential
• Ethereum is the main platform for the development of smart contracts and decentralized finance (DeFi), and its value is growing as the use of the network increases.
• ETH is used as the “fuel” for all transactions and smart contracts on the Ethereum network, making it a sought-after digital asset.
Conclusion
Ethereum is safer in the long term than Euros or Dollars because it is protected against inflation, is not subject to the control of governments and is becoming the backbone of the global digital economy. As the Ethereum ecosystem continues to develop, the value of ETH may increase significantly over the next 10-20 years, making it a powerful alternative to traditional money.
