Ethereum is a decentralized blockchain platform that enables developers to build and deploy decentralized applications (Dapps). It was proposed in 2013 by Vitalik Buterin and launched in 2015. Ethereum’s native cryptocurrency is called Ether (ETH).
One of the main features of Ethereum is its ability to create smart contracts, which are self-executing contracts with the terms of the agreement between the buyer and seller being directly written into code. These smart contracts are powered by the Ethereum Virtual Machine (EVM), a decentralized virtual machine that runs on nodes connected to the Ethereum network.
Ether is used to pay for transaction fees on the Ethereum network, as well as to incentivize miners to process and validate transactions. The supply of Ether is uncapped, but a hard cap of 18 million ETH per year was implemented in 2017 to control inflation.
Ethereum differentiates itself from other blockchain platforms, such as Bitcoin, by focusing on programmability and flexibility. This allows developers to create a wide range of Dapps and decentralized autonomous organizations (DAOs).
Ethereum’s most well-known use case is its role in the booming world of decentralized finance (DeFi). DeFi refers to a broad range of financial services, such as lending, borrowing, and trading, that operate on decentralized networks without the need for intermediaries. Ethereum’s smart contract capabilities make it a popular platform for DeFi projects.
Ethereum is constantly evolving and has undergone several major upgrades, including the recent launch of Ethereum 2.0, which aims to improve the network’s scalability, security, and efficiency. This upgrade is necessary to support the increasing usage and demand for Ethereum and its Dapps.
In summary, Ethereum is a decentralized blockchain platform that enables the creation of smart contracts and Dapps. It has a native cryptocurrency called Ether, which is used for transaction fees and to incentivize miners. Ethereum has gained widespread adoption for its programmability, flexibility, and role in the rapidly growing DeFi space. With ongoing upgrades and developments, Ethereum continues to be a leading player in the world of blockchain technology.