What is the Ethereum Blockchain?
Ethereum is an open-source, decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). Founded by Vitalik Buterin and launched in 2015, Ethereum primarily differentiates itself from Bitcoin by allowing programmable transactions, which are executed via its native cryptocurrency, Ether (ETH).
Key Features
- Smart Contracts: Self-executing contracts with the terms written into code, facilitating trustless transactions between parties.
- Decentralized Applications (DApps): Applications that run on the blockchain, free from central control, promoting transparency and security.
- Ethereum Virtual Machine (EVM): A runtime environment that executes smart contracts, ensuring they can operate consistently across the network.
Consensus Mechanism
Initially, Ethereum operated on a Proof of Work (PoW) consensus protocol, resembling Bitcoin’s mechanism. However, it has transitioned to Proof of Stake (PoS) with the Ethereum 2.0 upgrade, enhancing scalability and reducing energy consumption.
Use Cases
Ethereum powers various industries, including finance (DeFi), gaming, supply chain, and more. By enabling tokenization, it has also facilitated the rise of Non-Fungible Tokens (NFTs).
In summary, the Ethereum blockchain is a versatile platform that is transforming the digital landscape by promoting innovation and decentralization.