What is the Ethereum Blockchain?
The Ethereum blockchain is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily serves as a digital currency, Ethereum is designed as a flexible environment for executing programmable transactions through its unique cryptocurrency, Ether (ETH).
Launched in 2015 by Vitalik Buterin and a team of developers, Ethereum revolutionized the blockchain space by incorporating a Turing-complete programming language, allowing for complex computations. This has given rise to an ecosystem of innovative solutions ranging from decentralized finance (DeFi) to non-fungible tokens (NFTs).
Ethereum operates on a consensus mechanism known as Proof of Stake (PoS), transitioning from its initial Proof of Work (PoW) protocol, which enhances energy efficiency and scalability. This shift aims to improve transaction speed and reduce gas fees, which have been a significant challenge for users.
One notable feature of Ethereum is its ability to facilitate trustless transactions without intermediaries, making it ideal for applications like crowdfunding, digital identity verification, and supply chain management. With an active community and ongoing upgrades, Ethereum continues to lead in the blockchain space, setting itself apart from Bitcoin's more rigid functionality.