What is Ethereum technology

Ethereum technology is a decentralized platform that enables the creation and execution of smart contracts. It was introduced in 2015 by Vitalik Buterin and has become one of the most popular blockchain platforms in the world.

Unlike Bitcoin, which primarily focuses on digital currency, Ethereum aims to provide a platform for building and running decentralized applications (DApps). It uses its native cryptocurrency called Ether (ETH) to facilitate transactions and incentivize participants on the network.

One of the key features of Ethereum is its ability to support smart contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute when certain predefined conditions are met, eliminating the need for intermediaries in transactions.

Ethereum also operates on a decentralized network of computers called nodes, which work together to validate and record transactions on the blockchain. This decentralized nature ensures the security, transparency, and immutability of the network.

In addition to DApps and smart contracts, Ethereum has also enabled the creation of decentralized autonomous organizations (DAOs), which are organizations governed by smart contracts and run on the blockchain.

Overall, Ethereum technology has revolutionized the way applications are built and executed on the blockchain, allowing for greater programmability and versatility. Its impact extends beyond cryptocurrencies and is transforming various industries by providing a platform for decentralized innovation.