The benefits of using Ethereum for Web3 are primarily the following:
1. Decentralization: Ethereum is a decentralized blockchain network, which means that there is no central authority controlling the network. This makes it a more secure and resilient platform compared to traditional centralized systems.
1. Smart Contracts: Ethereum allows for the creation of smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This eliminates the need for intermediaries and reduces costs.
1. Tokenization: Ethereum allows for the creation and management of tokens, which can represent any asset and be traded on the Ethereum network.
1. Interoperability: Ethereum can be integrated with other blockchain networks and legacy systems, making it highly interoperable.
The technical description of the process involves the interaction between nodes in the Ethereum network. Nodes are computers connected to the Ethereum blockchain, which maintain a copy of the blockchain ledger. Transactions are broadcasted to the network and validated by nodes through a consensus mechanism known as proof-of-work (PoW) or proof-of-stake (PoS). Once validated, transactions are written to the Ethereum blockchain, which is a collection of blocks containing transactions. Smart contracts can also be deployed to the network and interacted with through transactions. Tokens can be created on the Ethereum network through smart contracts and can be transferred through Ethereum transactions. Interoperability is achieved through the use of standards like ERC-20 and ERC-721, which allow for tokens to be traded across different Ethereum-based applications and even with other blockchain networks.
