What is Ethereum

Ethereum is a decentralized, open-source blockchain system that features smart contract functionality. It was proposed in late 2013 by programmer Vitalik Buterin and development began through a Swiss company called Ethereum Switzerland GmbH (EthSuisse).

The Ethereum blockchain allows developers to build and deploy decentralized applications (dApps). These applications run on a peer-to-peer network and do not rely on a centralized server or authority, offering increased transparency and resistance to censorship.

Key Features of Ethereum

• Smart Contracts: Self-executing contracts with the terms directly written into code.
• Ether (ETH): The native cryptocurrency used to pay for transactions and computational services on the Ethereum network.
• Ethereum Virtual Machine (EVM): A runtime environment that executes smart contracts on the Ethereum network.

Use Cases

Ethereum has enabled the rise of decentralized finance (DeFi), non-fungible tokens (NFTs), and various applications in gaming, identity, and supply chain management. These innovations have made Ethereum one of the most widely used blockchain platforms in the world.

Ethereum 2.0

To address scalability and energy efficiency issues, Ethereum is transitioning to Ethereum 2.0, which introduces a proof-of-stake (PoS) consensus mechanism. This upgrade aims to improve the network's performance while reducing its environmental impact.

Conclusion

Ethereum is more than just a cryptocurrency; it is a platform for innovation in the blockchain space. Its ability to run decentralized applications and smart contracts has revolutionized how digital agreements and transactions can be handled across the globe.