Why Ethereum?
Ethereum (ETH) is a decentralized blockchain that enables developers to build and deploy smart contracts and decentralized applications (DApps). Its programmable capabilities forms a strong basis for digital innovation. It is nowadays the second most popular cryptocurrency. Ethereum was founded by Vitalik Buterin, Dr. Gavin Wood, Anthony Di Iorio, Charles Hoskinson, Joseph Lubin, and Mihai Alisie in 2015.
01
Smart contracts empower decentralized applications.
02
Supports a diverse ecosystem of innovations and connected Layer 2‘s.
03
Interoperability with other blockchains enhances utility and usage.
04
Upgradeability ensures ongoing optimization.
What stands out?
Ethereum is noteworthy due to pioneering smart contracts. You can see them as programmable agreements that automatically execute when the predetermined conditions have been met. Therefore, this innovation has enabled a vast ecosystem of decentralized applications (DApps) and digital assets, creating innovation in finance, decentralized governance, and beyond.
Understanding Ethereum
Ethereum operates as a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). At its core it utilizes blockchain technology. So it is similar to Bitcoin, but with added capabilities from the start.
Functionality
Smart contracts are self-executing contracts with predefined conditions written in code. These contracts automatically execute and enforce agreements when conditions are met. Ethereum’s blockchain stores these contracts, thus ensuring transparency and immutability. Developers leverage its programming language, Solidity, to create smart contracts for various applications, from financial services to gaming. More about smart contracts.
Utilization
To use Ethereum, you typically interact through wallets. These wallets store cryptographic keys which are required to access funds and execute transactions on the blockchain. You can send Ether (ETH), Ethereum’s native cryptocurrency, or interact with DApps deployed on the network. Additionally, this platform supports the creation of tokens, allowing users to issue their digital assets or participate in token sales and decentralized finance (DeFi) protocols. It provides a strong foundation for building and utilizing innovative blockchain applications.
Ethereum in a nutshell
In conclusion, Ethereum operates as layer 1 blockchain, with it’s own consensus mechanism being Proof of Stake (PoS) and has its own native coin ETH on-chain.
