Ethereum is much more than just a cryptocurrency; it’s a groundbreaking platform that has revolutionized the blockchain industry. Launched in 2015 by a team led by Vitalik Buterin, Ethereum introduced a new concept called “smart contracts,” which has paved the way for a wide array of decentralized applications (DApps). As the second-largest blockchain platform by market capitalization, Ethereum has established itself as a major player in the world of digital finance and decentralized technology. Let’s explore what makes Ethereum unique, its core features, and its impact on the future of blockchain.
1. What is Ethereum?
Ethereum is an open-source, decentralized blockchain platform that enables developers to build and deploy smart contracts and dApps. Unlike Bitcoin, which primarily functions as a digital currency, Ethereum serves as a platform for building decentralized applications that operate autonomously without any central authority or intermediaries.
At its core, Ethereum uses its native cryptocurrency, Ether (ETH), to power transactions and computational operations on its network. Developers use ETH to pay for transaction fees and services on the Ethereum network. This dual purpose — as both a digital currency and a smart contract platform — makes Ethereum a versatile tool for a wide range of applications.