Ethereum,
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dapps) through the use of its native cryptocurrency, Ether (ETH). It was launched in 2015 by Vitalik Buterin and has since become the second-largest cryptocurrency by market capitalization. Ethereum’s blockchain is programmable, allowing developers to build and deploy their own decentralized applications on the platform.
Ethereum Blockchain
The Ethereum blockchain is a decentralized, open-source platform that enables the creation of smart contracts and decentralized applications (dapps). It is based on a peer-to-peer network and allows for the creation of new tokens, called ERC-20 tokens, which can be used to represent any asset or utility. The Ethereum blockchain allows for the execution of smart contracts, which are self-executing contracts with the terms of the agreement written directly into code. This allows for the automation of processes and the elimination of intermediaries. The Ethereum blockchain uses a consensus algorithm called Proof of Work (PoW) to validate transactions and add them to the blockchain. The native cryptocurrency of the Ethereum blockchain is Ether (ETH).
Founder of Ethereum
The founder of Ethereum is Vitalik Buterin. He is a Canadian-Russian programmer and writer. He initially became interested in bitcoin and blockchain technology in 2011, and eventually proposed the development of a new platform with a more general scripting language, which eventually became Ethereum. Buterin published the Ethereum whitepaper in 2013 and the Ethereum network was launched in July 2015. Since its launch, Ethereum has grown to become the second-largest blockchain by market capitalization and has played a significant role in the development of the broader cryptocurrency and blockchain ecosystem.
Decentralized application (DApp)
A decentralized application (DApp) is a software application that runs on a blockchain network. DApps on the Ethereum blockchain are built using the Solidity programming language and are powered by Ether (ETH), the native cryptocurrency of the Ethereum blockchain.
DApps on the Ethereum blockchain have several key characteristics:
- They are open-source and decentralized, meaning that they are not controlled by any single entity.
- They use smart contracts, which are self-executing contracts with the terms of the agreement written directly into code.
- They use a consensus algorithm, such as Proof of Work (PoW) or Proof of Stake (PoS), to validate transactions and add them to the blockchain.
Examples of DApps on the Ethereum blockchain include:
- CryptoKitties, a virtual pet breeding game that allows players to buy, sell and breed unique virtual cats.
- Gnosis, a prediction market platform that allows users to create and trade predictions about future events.
- MakerDAO, a decentralized platform that allows users to create and trade in a stablecoin, DAI, that is pegged to the value of the US dollar.
Dapps are part of the new decentralized web3 stack which can bring more trust, transparency, and security to users and businesses.
Token of Ethereum
Ethereum has its own native token, called Ether (ETH), which is used to pay for transactions on the Ethereum network and for the execution of smart contracts. Ether is also used as a means of exchange and store of value, similar to other cryptocurrencies.
In addition to Ether, there are also other tokens that exist on the Ethereum blockchain. These tokens are created using the ERC-20 standard, which is a set of rules that must be followed for a token to be recognized as an ERC-20 token on the Ethereum blockchain. ERC-20 tokens are often used to represent assets or utilities, such as digital assets, loyalty points, or access to a specific service.
Some examples of ERC-20 tokens on the Ethereum blockchain include:
- Bitcoin (BTC) which is an ERC-20 token that represents Bitcoin on the Ethereum blockchain
- Tether (USDT) which is a stablecoin pegged to the value of the US dollar
- Chainlink (LINK) which is a token used to pay for oracles services
- Binance Coin (BNB) which is the native token of Binance exchange and can be used to pay for transaction fees on the exchange.
These tokens can be stored and transferred using Ethereum wallets and can be traded on decentralized and centralized exchanges.
