What Is Ethereum?


Ethereum is a type of cryptocurrency and a blockchain-based platform for decentralized applications. It provides a decentralized virtual machine that can execute scripts using an international network of public nodes. Ethereum is built on a platform with a built-in cryptocurrency called Ether. It provides a decentralized virtual machine and the ability to create smart contracts.

Ethereum runs on smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. The Ethereum blockchain of this platform has more than 30,000 nodes running it as per May 2018.

Ethereum can be used to build Decentralized Autonomous Organizations, which are organizations that do not have a single leader and are instead governed by computer code. The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts in Ethereum. It runs on top of the Ethereum blockchain.

Ethereum was developed by Vitalik Buterin in 2013, and its token is called ether. Ethereum has been the first successful attempt at creating a smart contract platform that enables developers to build decentralized applications.

Ethereum is the second most popular cryptocurrency in the world after Bitcoin and as of September 2022 has a market capitalization of $178.90 billion USD.

The Ethereum platform can be used to create other cryptocurrencies, tokens, and decentralized applications (Dapps). It isn't just a cryptocurrency but also an open-source software platform which provides developers with tools to build and deploy decentralized applications (Dapps) on top of it. The popularity of Ethereum is partially due to it being used by many start-ups to build their business models on its technology.

Ethereum is a cryptocurrency like Bitcoin but it has some significant differences. Ethereum enables developers to build different types of applications on top of it and its fundamental unit is called Ether, not Citcoin. Bitcoin was first introduced in 2008 and is decentralized with no single institution controlling it while Ethereum was introduced in 2013 and has become one of the most popular cryptocurrencies today because it handles more transactions than Bitcoin and uses smart contracts. Because Ethereumcan handle more transactions than Bitcoin and uses smart contracts it remains extremely popular among crypto enthusiasts.

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