What is #Ethereum ? Let’s learn and know about it.
Ethereum is an open-source, decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It was proposed in late 2013 by programmer Vitalik Buterin and development began through a Swiss company, Ethereum Switzerland GmbH (EthSuisse), with the network going live on July 30, 2015. Here are the key aspects of Ethereum:
1. Smart Contracts : Ethereum's primary innovation is the support for smart contracts—self-executing contracts where the terms of the agreement are written directly into code. These contracts automatically execute and enforce the terms of the agreement when predefined conditions are met.
2. Ethereum Virtual Machine (EVM) : The EVM is the runtime environment for smart contracts in Ethereum. It allows any decentralized application to run on its platform without downtime, fraud, control, or interference from a third party.
3.Ether (ETH) : Ether is the native cryptocurrency of the Ethereum platform. It is used to pay for transaction fees and computational services on the Ethereum network. Developers use ETH to pay for the costs of executing their smart contracts.
4.Decentralized Applications (dApps) : Ethereum supports the development of dApps, which operate without a central authority and can have various applications, from finance (DeFi) to gaming and social media.
5.Decentralized Finance (DeFi) : One of the most significant applications of Ethereum has been in the realm of DeFi, which encompasses financial services such as lending, borrowing, trading, and earning interest without traditional intermediaries like banks.
6. ERC-20 and ERC-721 Tokens : Ethereum supports various token standards, such as ERC-20 for fungible tokens and ERC-721 for non-fungible tokens (NFTs). These standards facilitate the creation of new cryptocurrencies and digital assets on the Ethereum platform.
7.Proof of Stake (PoS) : Ethereum is transitioning from a Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS) with Ethereum 2.0.