Book Image

Blockchain Developer's Guide

By : Brenn Hill, Samanyu Chopra, Paul Valencourt, Narayan Prusty
Book Image

Blockchain Developer's Guide

By: Brenn Hill, Samanyu Chopra, Paul Valencourt, Narayan Prusty

Overview of this book

Blockchain applications provide a single-shared ledger to eliminate trust issues involving multiple stakeholders. It is the main technical innovation of Bitcoin, where it serves as the public ledger for Bitcoin transactions. Blockchain Developer's Guide takes you through the electrifying world of blockchain technology. It begins with the basic design of a blockchain and elaborates concepts, such as Initial Coin Offerings (ICOs), tokens, smart contracts, and other related terminologies. You will then explore the components of Ethereum, such as Ether tokens, transactions, and smart contracts that you need to build simple DApps. Blockchain Developer's Guide also explains why you must specifically use Solidity for Ethereum-based projects and lets you explore different blockchains with easy-to-follow examples. You will learn a wide range of concepts - beginning with cryptography in cryptocurrencies and including ether security, mining, and smart contracts. You will learn how to use web sockets and various API services for Ethereum. By the end of this Learning Path, you will be able to build efficient decentralized applications. This Learning Path includes content from the following Packt products: • Blockchain Quick Reference by Brenn Hill, Samanyu Chopra, Paul Valencourt • Building Blockchain Projects by Narayan Prusty
Table of Contents (37 chapters)
Title Page
About Packt

Disadvantages of Ethereum-based tokens

We have discussed the advantages and uses of Ethereum and Ethereum blockchain-based currencies throughout the previous chapters; let's now discuss some disadvantages of Ethereum-based tokens:

  • Unstable: The Ethereum blockchain is still undergoing lot of changes; this also includes moving the consensus method from the PoW to the PoS system. 
  • Dependability: The ERC20 tokens or any other tokens are based and built on top of Ethereum. This poses a threat, since Ethereum is itself undergoing frequent changes at most times.
  • Hard forks: Being dependent on another blockchain means, due to hard forks, unforeseen issues can occur.
  • Sovereignty: Since the tokens are based on Ethereum blockchain, there is no say in future development of these tokens. The decision of whether to choose ERC20 should be based on the application and use case.
  • Support: Any improvements or requirements for support after the smart contract is published on the blockchain can only be done on the...