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What is Ethereum?

By Pikai Mandal on Jan 1, 2020
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Ethereum is a blockchain-based decentralized platform that enables the creation of smart contracts and decentralized applications (dapps). It was first proposed in 2013 by a programmer named Vitalik Buterin, and it officially launched in 2015. It’s the first ever smart-contract enabled blockchain.

A blockchain is a digital ledger of transactions that is maintained by a network of computers on the internet, rather than a central authority. Each block in the chain contains a number of transactions, and once a block is added to the chain, the transactions in that block cannot be altered. This makes blockchain technology highly secure and transparent.

Ethereum is different from Bitcoin, the first and most well-known cryptocurrency, in that it is not just a digital currency but also a platform for creating decentralized applications. These applications run on a technology called smart contracts, which are self-executing contracts with the terms of the agreement written directly into code.

One of the key features of Ethereum is the ability to create and use custom tokens on its blockchain. These tokens can represent any asset, such as a physical asset like gold or a digital asset like a video game item. These tokens are often called ERC-20 tokens, and they are created using smart contracts on the Ethereum blockchain.

ETH is the native cryptocurrency of the Ethereum blockchain, which is used to pay for transactions and computational services on the network. It is also used as a form of payment for creating and using decentralized applications on the Ethereum platform. In simpler terms, it is the digital currency or token used to buy and sell goods or services on the Ethereum network.

In summary, Ethereum is a decentralized platform that enables the creation of smart contracts and decentralized applications, and ETH is the digital currency used to pay for transactions and services on the Ethereum network. This allows for a more open and transparent way of creating and executing agreements and transactions, without the need for a central authority.

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