What is Ethereum?

Vitalik Buterin announced his creation Ethereum in 2013 with the release of the whitepaper of the project. It describes the concept of an open source, public, blockchain platform that executes smart contracts. Smart contracts themselves are applications that work without interruption, censorship, fraud, or third-party intervention.

Ethereum enables developers to create and “publish” smart contracts, and to “print” their own cryptocurrencies quickly and easily. This happens directly in the Ethereum blockchain. This eliminates the need for developers to create new blockchain platforms, which saves time and financial resources. In addition, the necessary security and decentralization of Ethereum are given automatic access, which is not inherent in all blockchain platforms.

Smart contracts

Smart contracts built on Ethereum use a decentralized virtual machine that is consistent with the so-called “Turing machine”. It’s called the Ethereum Virtual Machine, or EVM for short. This is the part of the protocol that actually executes smart contracts or scripts. EVM executes scripts using an international network of nodes, ensuring the platform’s sustainability and dependency on external influence and censorship.

Ethereum scripts and smart contracts are written using a new programming language created specifically for Ethereum called Solidity.

Ether (ETH)

Ethereum has its own cryptocurrency called Ether (ETH). It is designed to encourage people to support nodes, execute scripts, and limit spam throughout the network.

When you make an Ethereum operation, you have to pay a performance fee. The performance fee you pay is called “Gas” and its value is in ether. Gas measures how much work a single action or set of actions must perform. The more calculations the operation requires, the higher the fee. The amount of ether you pay for Gas depends on your needs. Remember that nodes prioritize requests based on how much they pay. More expensive requests are given higher priority and are therefore prioritized.,

Use of Ethereum

The use of Ethereum has advantages, such as reliable uptime (time during which the system is active), for example. If the server of a private company gets damaged, its service would stop working. But if an Ethereum node stops working, there are plenty of other nodes around the world to support the service online. The same applies to potential censorship. It is much easier for an enemy to attack and shut down 1 centralized server than the 100s or 1000s at different points around the world. This protects the service, ensuring that it is always accessible to all users in every part of the world.

So Ethereum can be seen as a blockchain with its own built-in programming language. It can also be seen as a kind of “global computer” whose work and value are secured through decentralization and consensus, providing indisputable advantages over any centralized, private server.