Is Ethereum Safe?

Question

Ethereum being the second best cryptocurrency as described by many enthusiasts and analysts, leaves us in question as whether the transaction in Ethereum are safe? Is Ethereum Safe?

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Charlie Evans 3 months 1 Answer 36 views 0

Answer ( 1 )

  1. Most of the high-profile “Ethereum security problems” you’ve read about aren’t the result of vulnerabilities in the Ethereum blockchain itself. Those problems have more to do with the infrastructure of smart contracts; the blockchain, in contrast, has proven to be fairly reliable over time.

    The basic concept of a blockchain — whether it’s Ethereum, Bitcoin, or something else altogether — is that no one can seize control of the network or add fraudulent blocks to the chain unless they control the majority of the network’s computational power. The economic incentives that Ethereum provides to its miners — transaction fees, along with newly minted ether, for every successfully mined block — encourages miners to act in the network’s best interests rather than trying to undermine or manipulate it.

    Proof of Stake could make blockchain more secure. Although it is yet to come.

    You might have heard that Ethereum is transitioning from proof-of-work mining to Proof of stake mining. In the former model, miners race to solve computationally complex problems to add the next block to the blockchain. In the latter model, validator nodes on the network take turns proposing and validating blocks — and both the weight of a node and the size of its reward is based on the number of coins that the node is staking.

    There’s actually good reason to believe that proof-of-stake will make the Ethereum blockchain more secure.

    But before investing, it is better to do your own homework first by doing a thorough market research.

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