“Ethereum 101: A Beginner’s Guide to the Decentralized Blockchain Platform

What is Ethereum?

Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It was created in 2015 by Vitalik Buterin, a Russian-Canadian programmer and co-founder of Bitcoin Magazine.

The main purpose of Ethereum is to allow developers to build and deploy decentralized applications (dApps) on the Ethereum blockchain. These dApps can be used for a wide range of purposes, including financial applications, supply chain management, voting systems, and more.

What are smart contracts?

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein are stored on the blockchain.

Smart contracts allow for the automation of contract execution and enforcement, which can reduce the need for intermediaries and increase the speed and efficiency of transactions. They also provide a level of transparency and security, as the terms of the contract are stored on the blockchain and can’t be altered once they have been agreed upon.

Why does Ethereum exist?

Ethereum was created to address some of the limitations of the Bitcoin blockchain. While Bitcoin was designed primarily as a decentralized digital currency, Ethereum was designed to be a platform for building decentralized applications.

One of the main limitations of the Bitcoin blockchain is that it can only process a limited number of transactions per second. This can lead to slow transaction times and high fees for users. Ethereum, on the other hand, was designed to be more flexible and scalable, with the ability to process a higher number of transactions per second.

In addition to its scalability, Ethereum also offers more advanced programming capabilities than the Bitcoin blockchain. This allows developers to build a wider range of applications on the Ethereum platform, including those that require more complex logic and data storage.

Overall, Ethereum exists to provide a decentralized platform for the creation and deployment of smart contracts and decentralized applications, with the goal of increasing efficiency, transparency, and security in a wide range of industries.