Crypto Classroom: What is Ethereum? 🤔
• Ethereum is not just a cryptocurrency; it also provides a smart contract platform for developers to build decentralized applications. Smart contracts are a key feature, with their terms and conditions written in code, allowing for automatic execution when conditions are met, eliminating the need for third-party intervention, enhancing transaction efficiency, building trust, and reducing costs and risks.
• Ethereum has an EVM virtual machine, making it easy for developers to use various programming languages to write smart contracts and deploy them on the network, reducing the difficulty of developing decentralized applications and attracting many developers and innovators.
II. Application Areas of Ethereum
• On Ethereum, decentralized applications cover many fields including finance, gaming, social networking, and supply chain. For example, decentralized finance applications allow users to engage in lending, trading, and wealth management activities without traditional financial institutions; decentralized games enable players to truly own game assets and trade them freely.
III. The Development and Improvement of Ethereum
• Ethereum continues to develop and improve, having transitioned from a proof-of-work consensus mechanism to a proof-of-stake mechanism, effectively enhancing network efficiency and security, aiming to address issues of performance and scalability.
IV. Issues Facing Ethereum
• Ethereum experiences high transaction fees and poor user experience during network congestion. Additionally, the security of smart contracts is critical; any vulnerabilities in the contract code can lead to loss of user assets.
V. The Status and Impact of Ethereum
• Despite its challenges, Ethereum currently leads in innovation within the blockchain space, opening up numerous possibilities for future decentralized applications and inspiring further thoughts and explorations regarding the applications of blockchain technology.
