Table of Contents
Quick Facts
Ethereum (ETH) is an open-source, decentralized platform that enables the creation of decentralized applications (dApps) and smart contracts.
What is Ethereum?
Ethereum is an open-source, decentralized platform that enables the creation of decentralized applications (dApps) and smart contracts. Founded in 2014 by Vitalik Buterin, Ethereum is the largest and most widely-used blockchain platform for building decentralized applications.
Who is Ethereum for?
Ethereum is for:
- Developers: Building decentralized applications (dApps) and smart contracts using Ethereum’s Solidity programming language.
- Entrepreneurs: Creating innovative business models and use cases on the Ethereum network.
- Investors: Participating in the Ethereum ecosystem through token sales and Initial Coin Offerings (ICOs).
- Users: Benefiting from decentralized applications and services built on the Ethereum platform.
What does Ethereum do?
Ethereum’s core features include:
- Smart Contracts: Self-executing contracts with the terms of the agreement written directly into lines of code.
- Decentralized Applications (dApps): Applications built on the Ethereum network, allowing for decentralized decision-making and autonomous operation.
- Token Creation: The ability to create ERC-20 tokens, which can represent a variety of assets, such as currencies, commodities, or voting rights.
Use Cases for Ethereum
| Industry | Use Case |
|---|---|
| Finance | Decentralized lending platforms, stablecoins |
| Gaming | Decentralized gaming platforms, in-game assets |
| Supply Chain | Tracking and verification of goods, inventory management |
| Healthcare | Secure medical records, decentralized clinical trials |
How does Ethereum work?
Ethereum’s process involves:
- Node Network: A network of computers (nodes) verifies and validates transactions on the Ethereum blockchain.
- Smart Contract Execution: Smart contracts are executed on the Ethereum Virtual Machine (EVM).
- Gas Fees: Transactions are fueled by gas, which is paid in Ethereum’s native cryptocurrency, ETH.
- Blockchain Updates: The Ethereum blockchain is updated with new transactions and smart contract executions.
Ethereum’s Impact
Ethereum has been instrumental in driving the adoption of blockchain technology, with its ERC-20 token standard becoming the de facto standard for token creation. Ethereum’s smart contract architecture has also enabled the creation of decentralized applications, which are changing the way we interact with online services.
