What is Ethereum?
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract (scripting) functionality.
It supports a modified version of Nakamoto consensus via transaction-based state transitions. Ethereum was initially proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was funded by an online crowdsale that took place between July and August 2014.
The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale. This accounts for about 13 percent of the total circulating supply.
Ethereum has since become the second largest cryptocurrency by market capitalization after Bitcoin, with a total market cap of over $150 billion as of April 2021. Ethereum's native cryptocurrency is called Ether (ETH). It is used to pay for transaction fees and services on the Ethereum network.
The Ethereum platform enables developers to build and deploy decentralized applications (dApps). These are applications that run on a decentralized network of computers rather than a single computer or server. The Ethereum Virtual Machine (EVM) is responsible for executing code on the Ethereum blockchain, allowing developers to create smart contracts and decentralized applications without any downtime or interference from third parties.
Smart contracts are self-executing contracts that are written in code and stored on the blockchain, allowing users to exchange money, property, shares, or anything of value in a transparent manner without the need for intermediaries or third parties. In addition to its use as a platform for dApps and smart contracts, Ethereum also serves as a platform for Initial Coin Offerings (ICOs). ICOs are fundraising events where companies issue their own tokens in exchange for Ether or other cryptocurrencies such as Bitcoin.
These tokens can then be used to purchase goods or services from the issuing company or traded on cryptocurrency exchanges like any other digital asset.
