I’d like to post a series of articles under the name of “Crypto Classic”. It’s more like educating myself. But it could be helpful for some community members too. The second post is about ethereum - bitcoin is like a gold while etherum is a platform.
Ethereum is a decentralized blockchain platform that enables developers to build and deploy decentralized applications (Dapps) and smart contracts. It was created by Vitalik Buterin in 2013 and launched in 2015.
Ethereum’s primary currency is Ether (ETH), which is used to pay for transaction fees and incentivize the network’s validators. The Ethereum network is made up of nodes, which are computers that run the Ethereum software and verify transactions on the network. These nodes are rewarded with ETH for their work in maintaining the network.
Ethereum differs from Bitcoin in several key ways. While Bitcoin’s primary use case is as a digital currency and store of value, Ethereum’s primary use case is to facilitate the creation and deployment of decentralized applications and smart contracts. Ethereum is also more flexible than Bitcoin in terms of the types of applications that can be built on top of it.
One of the key features of Ethereum is its ability to execute smart contracts. Smart contracts are self-executing digital contracts that automatically enforce the rules and regulations agreed upon by their participants. They are built on top of the Ethereum blockchain and can be used for a wide range of applications, from financial transactions to supply chain management to voting systems.
Ethereum has also been at the forefront of the development of decentralized finance (DeFi). DeFi refers to a suite of financial applications built on top of decentralized networks like Ethereum. These applications enable users to borrow, lend, and trade cryptocurrencies without the need for intermediaries like banks.
Ethereum is also in the process of transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. PoW requires nodes to solve complex mathematical equations in order to validate transactions on the network, while PoS relies on validators staking their own ETH as collateral in order to validate transactions. The transition to PoS is expected to reduce the energy consumption required to maintain the network and make it more secure.
Overall, Ethereum has become one of the most popular and widely used blockchain platforms, with a vibrant community of developers and users building and using decentralized applications and smart contracts on the network.
