Ethereum

Ethereum is an open-source, blockchain-based platform that enables developers to build and deploy decentralized applications (dApps). Unlike Bitcoin, which is designed primarily as a digital currency, Ethereum's blockchain is focused on running the programming code of any decentralized application.

Key Concepts and Features

Smart Contracts

At the heart of Ethereum's platform are smart contracts, self-executing contracts with the terms of the agreement directly written into code. These contracts automatically enforce and execute the terms of agreements without the need for intermediaries.

Ethereum Virtual Machine (EVM)

The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts in Ethereum. It provides a sandboxed environment for smart contract execution, ensuring that they run in isolation from the rest of the network.

Ether (ETH)

Ether is the cryptocurrency generated by the Ethereum platform as a reward to miners in a proof-of-work system for adding blocks to the blockchain. It is also used to pay for transaction fees and computational services on the Ethereum network.

Decentralized Applications (dApps)

Ethereum enables developers to build and deploy dApps. These applications operate on a P2P network of computers rather than a single computer, ensuring that they are free from control and interference by any single authority.

Decentralized Finance (DeFi)

Ethereum has become a foundational platform for the emerging Decentralized Finance (DeFi) movement, enabling users to access financial services such as lending, borrowing, and trading without traditional financial intermediaries.

Non-Fungible Tokens (NFTs)

Ethereum's blockchain supports the creation and exchange of NFTs, unique digital assets that represent ownership of specific items or content, enabling digital scarcity and the possibility of asset interoperability across various platforms.

Ethereum's goal is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith. This aspect makes the implications for those in some countries more compelling, as those without state infrastructure and state identifications can get access to bank accounts, loans, insurance, or a variety of other financial products.