What is Ethereum?

Ethereum is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Unlike traditional cryptocurrencies like Bitcoin, which are primarily used as digital money, Ethereum's primary purpose is to serve as a platform for creating and running these smart contracts. Smart contracts are self-executing contracts with the terms directly written into code. They automatically enforce and execute the terms of an agreement based on predefined rules.

Ethereum operates on a blockchain, which is a distributed ledger that records all transactions across a network of computers. This blockchain is maintained by a network of nodes (computers) that validate and agree on the state of the blockchain. Ethereum's blockchain is known for its flexibility, allowing developers to build various applications that can interact with each other.

One of Ethereum's key features is its native cryptocurrency, Ether (ETH). Ether is used to pay for transaction fees and computational services on the Ethereum network. It can also be traded like other cryptocurrencies. Ethereum has gained popularity due to its support for Initial Coin Offerings (ICOs) and decentralized finance (DeFi) applications, which have revolutionized the way financial services are offered and accessed.

Ethereum's development is overseen by the Ethereum Foundation, a non-profit organization dedicated to supporting the growth and evolution of the Ethereum ecosystem. The platform is continuously evolving, with major upgrades and improvements being introduced to enhance its scalability, security, and functionality.

In summary, Ethereum is a versatile blockchain platform that enables the creation and execution of smart contracts and decentralized applications. Its unique features and capabilities have made it a cornerstone of the blockchain and cryptocurrency space, driving innovation and transformation in various industries.