Ethereum is a decentralized, open-source blockchain platform that enables smart contracts and decentralized applications (DApps) to run on a global network of computers. Unlike Bitcoin, which primarily focuses on peer-to-peer digital currency, Ethereum introduces a programmable layer for building and deploying blockchain-based solutions.

Key Features

  • Decentralized Network: Operates on a distributed network of nodes, ensuring no single point of control.
  • Smart Contracts: Self-executing agreements with the terms directly written into code.
  • Gas Fees: Transactions require payment in Gas, which fuels the network and prevents spam.
  • Developer Ecosystem: Supports a wide range of tools, libraries, and frameworks for building DApps.

How It Works

  1. Transaction Propagation: Users send transactions to the network, which are verified by nodes.
  2. Consensus Mechanism: Uses Proof of Work (PoW) and is transitioning to Proof of Stake (PoS).
  3. Execution of Smart Contracts: Verified transactions are executed by the Ethereum Virtual Machine (EVM).

Further Reading

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