Ethereum
Ethereum is a decentralized blockchain platform that enables the creation and execution of smart contracts and decentralized applications (dApps). Founded by Vitalik Buterin and launched in 2015, Ethereum introduced programmable blockchain technology, allowing developers to build applications with self-executing logic.
What is Ethereum?
Ethereum is a blockchain network designed to function as a "world computer," where users can create and deploy applications without a central authority. Its native cryptocurrency, Ether (ETH), is used to pay for transaction fees, known as gas fees, and powers the platform.
How Does Ethereum Work?
Ethereum operates through several key mechanisms:
Smart Contracts: Ethereum allows developers to create smart contracts, which are self-executing code that runs on the blockchain and enables trustless agreements.
Ethereum Virtual Machine (EVM): The EVM is a computing engine that processes smart contracts and ensures compatibility across all nodes in the network.
Consensus Mechanism: Ethereum recently transitioned to Proof of Stake (PoS), where validators, rather than miners, secure the network by staking ETH.
Why is Ethereum Important?
Ethereum has had a transformative impact for several reasons:
Programmable Blockchain: Ethereum introduced the concept of programmable smart contracts, revolutionizing what blockchain technology could achieve.
DeFi and NFTs: It serves as the foundation for decentralized finance (DeFi) and non-fungible tokens (NFTs), supporting various innovations.
Developer Ecosystem: With a large community of developers, Ethereum is one of the most popular platforms for building dApps, contributing to rapid growth and innovation.
In summary, Ethereum is a foundational blockchain network that enables complex applications and ecosystems, fostering a decentralized internet and financial systems.