Description: Ethereum is a decentralized platform that enables the creation and execution of smart contracts and decentralized applications (DApps) without downtime, fraud, control, or interference from a third party. Unlike Bitcoin, which primarily focuses on being a digital currency, Ethereum offers a broader environment for innovation in blockchain technology. Its architecture allows developers to build applications that can operate autonomously, thanks to smart contracts, which are programs that automatically execute when certain conditions are met. Ethereum uses its own cryptocurrency, called Ether (ETH), which is used to pay for transactions and services within the network. The platform has evolved to include features like Proof of Stake (PoS), which aims to improve energy efficiency and network security, in contrast to the Proof of Work (PoW) model it previously used. Ethereum is fundamental in the decentralized finance (DeFi) ecosystem and has been a catalyst for the development of Web3, a new paradigm of the internet that promotes decentralization and user data ownership.
History: Ethereum was proposed by Vitalik Buterin in 2013, and its development began in 2014. The network officially launched on July 30, 2015. Since then, it has undergone several significant updates, including ‘Homestead’ in 2016, ‘Metropolis: Byzantium’ in 2017, and ‘Metropolis: Constantinople’ in 2019. In 2020, Ethereum 2.0 began its implementation, transitioning from a Proof of Work system to a Proof of Stake system.
Uses: Ethereum is primarily used to create smart contracts and DApps across various industries, including finance, gaming, and supply chain management. It serves as the foundation for many DeFi platforms, allowing users to lend, borrow, and trade assets without intermediaries.
Examples: Examples of applications on Ethereum include Uniswap, a decentralized exchange protocol, and CryptoKitties, a blockchain-based game that allows users to collect and breed virtual cats. Additionally, platforms like Aave and Compound enable lending and saving in cryptocurrencies.
