Introduction to Ethereum

Ethereum is a decentralized blockchain platform that goes beyond the basic functionality of transferring value. It was proposed by Vitalik Buterin in late 2013, and officially launched in 2015. Ethereum introduced the concept of smart contracts, enabling developers to create decentralized applications (dApps) with capabilities far beyond simple transactions.

1. What Is Ethereum?

Ethereum is often referred to as a “world computer” because it allows anyone to deploy permanent and immutable decentralized applications. Its native cryptocurrency is called Ether (ETH), used to pay for transaction fees and computational services on the Ethereum network.

2. Key Features
  • Smart Contracts: Self-executing contracts that automatically enforce the rules and terms coded within them.
  • Decentralized Apps (dApps): Applications that run on the Ethereum network without a single point of failure.
  • ERC-20 Tokens: A standard for creating new tokens on top of the Ethereum blockchain, powering countless projects.
  • Programmable Money: Developers can programmatically handle financial operations, from complex transactions to entirely new forms of financial services.
3. How It Differs from Bitcoin

While Bitcoin primarily functions as a digital currency or store of value, Ethereum aims to serve as a decentralized platform for a wide range of applications. The ability to create and run smart contracts is the core difference, opening the door to use cases like DeFi, NFTs, and more.

4. Conclusion

Ethereum marks a significant evolution in blockchain technology. Its introduction of smart contracts and decentralized applications has reshaped the crypto landscape, enabling a thriving ecosystem of innovations. Understanding Ethereum’s fundamentals is the first step toward exploring its vast potential.

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