Ethereum update: How scalable it is?
I’ve got a background in CS but I’m a layman in Ethereum and Bitcoin.
So, I see the value of the decentralized “trust system” of blockchains. I can see how it’s important for digital currencies, securities, registries and so no. I can see the exponential importance it will achieve with the growing of IoT.
However, when I first heard about Bitcoin , my reaction was “this does not scale!”.I might be wrong (in fact, I suspect I’m indeed wrong, and this is the reason of this post), but the idea of a ever growing chain with the complete set of transactions from the beginning of time being attached in the next transaction does not seem to work.
Also, since the security of a block is its very difficulty on mining its key, and it’s more and more difficult to mine the next key, here it seems we have a second point where it doesn’t scale, right?
So, could you guys help me understand how does Ethereum and Bitcoin scale? And what are their limits of scaling afterall?
The second part of my question is in regard to the safety of investing on Ethereum.
I’ve heard Ehterium is a much better technology than Bitcain, more generic. And from the buzz and a few things I’ve read, it seems to me that Ethereum will slowly become a de facto standard. Maybe not for currencies… (Disclaimer: I”m just saying my first impressions… because to be honest, I don’t understand the reasons of what I’ve ust said.)
So I started thinking about acquiring some Ether. But then those parts are echoing in my mind “much better technology” and “becoming the de facto standard”: what’s the chance that I buy Ether but the technology change to become more scalable or whatever, and my Ehter will turn to dust? With the same question in regard to Bitcoin.
See, I”m not asking about their market valuation. I’m asking about their value as technology. How good are those technologies and what are the chances they are gonna be replaced for something else?
Please guys, help me understand this thing a little better. And if I’ve said any bullshit, please correct me.
Try to be technical and precise as much as possible, but not as much as to require a math degree to understand the answer – if possible. Thanks!
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
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