Ethereum is a decentralized open-source blockchain platform that enables the creation of decentralized applications (dApps) and smart contracts. It was created by Vitalik Buterin in 2015, and since then it has become one of the most popular and widely used blockchain platforms in the world.
Ethereum was designed as a more flexible and versatile platform than Bitcoin. While Bitcoin is primarily used as a digital currency, Ethereum's main focus is on building decentralized applications that can run on its blockchain. These applications can be anything from decentralized finance (DeFi) platforms to supply chain management systems to online marketplaces.
Ethereum's smart contract functionality is one of its most significant attributes. Smart contracts are self-executing programs that run on the blockchain and automatically enforce the terms of a contract. They can be used to automate a wide range of transactions, from simple payments to complex financial instruments. Smart contracts are also tamper-proof, as they are stored on the blockchain and cannot be altered once they are deployed.
Another important feature of Ethereum is its decentralized nature. Unlike traditional applications, which are typically hosted on centralized servers, dApps built on Ethereum run on a network of nodes, with each node contributing computing power and storage to the network. This makes Ethereum more resilient to censorship and downtime, as there is no single point of failure.
Ethereum also has its own cryptocurrency, called Ether (ETH). Ether is used to pay for transactions and to incentivize nodes to contribute computing power to the network. It is also used as a store of value and a speculative investment, with many people buying and holding Ether as a long-term investment.
