Ethereum is a blockchain-based platform that enables developers to build and deploy decentralized applications (DApps). It was proposed by Vitalik Buterin in late 2013 and launched in July 2015. Ethereum introduced a new blockchain architecture that expanded the capabilities of Bitcoin's underlying technology by allowing the execution of smart contracts.
Key features of the Ethereum blockchain include:
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Smart Contracts: Ethereum introduced the concept of smart contracts, which are self-executing contracts with predefined rules and conditions. These contracts automatically execute when the specified conditions are met, removing the need for intermediaries.
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Decentralized Applications (DApps): Ethereum provides a platform for developers to build decentralized applications that leverage the power of smart contracts. DApps can be used for various purposes, such as decentralized finance (DeFi), gaming, identity management, and more.
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Ethereum Virtual Machine (EVM): The Ethereum Virtual Machine is a runtime environment that executes smart contracts. It allows developers to write code in high-level programming languages, such as Solidity, and deploy them on the Ethereum blockchain.
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Ether (ETH) Cryptocurrency: Ether is the native cryptocurrency of the Ethereum blockchain. It is used to facilitate transactions, pay for computational services, and incentivize participants to secure the network through a consensus mechanism called Proof of Stake (PoS).
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Consensus Mechanism: Ethereum is transitioning from its current Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS). In PoS, validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.
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Ethereum Improvement Proposals (EIPs): EIPs are proposals for changes and improvements to the Ethereum network. They are discussed and implemented to upgrade the protocol and introduce new features.
It's worth mentioning that Ethereum has a vibrant and active development community, with numerous projects and tokens built on its blockchain. It has become the most widely adopted platform for creating decentralized applications, offering developers flexibility and programmability that goes beyond simple value transfer.