What is Ethereum? ETH
Explainer
Ethereum is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). It was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer, and development was crowdfunded in 2014. The network went live on July 30, 2015.
At its core, Ethereum is a blockchain-based platform that allows developers to create and execute smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These contracts automatically execute and enforce the terms when predefined conditions are met, without the need for intermediaries.
Key features of Ethereum include:
Smart contracts: Ethereum's primary innovation is the ability to create and deploy smart contracts. These contracts can be used to automate a wide range of processes, including financial transactions, supply chain management, digital identity verification, and more.
Decentralized applications (DApps): Ethereum provides a platform for developers to build decentralized applications (DApps) on top of its blockchain. These DApps can range from decentralized finance (DeFi) platforms to decentralized exchanges, gaming applications, and more.
Ether (ETH): Ether is the native cryptocurrency of the Ethereum platform and is used to pay for transaction fees and computational services on the network. It also serves as a store of value and can be traded on various cryptocurrency exchanges.
Turing completeness: Ethereum's programming language, Solidity, is Turing complete, meaning it can simulate any computational algorithm. This allows for the creation of complex smart contracts and DApps with a wide range of functionalities.
Ethereum Virtual Machine (EVM): The Ethereum Virtual Machine is a decentralized runtime environment that executes smart contracts on the Ethereum network. It ensures that code runs exactly as programmed, without any possibility of censorship, fraud, or third-party interference.
Ethereum has become one of the most widely used blockchain platforms, with a vibrant ecosystem of developers, projects, and users. Its flexibility, programmability, and support for smart contracts have made it a popular choice for building decentralized applications and deploying blockchain-based solutions across various industries.