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Ethereum

Ethereum is a decentralized, open-source blockchain platform launched in 2015 that allows developers to build decentralized applications (dApps) and smart contracts. It is the second largest cryptocurrency after Bitcoin. Ethereum's programming language Solidity allows developers to create smart contracts that execute automatically based on predefined conditions. These smart contracts can be used for financial transactions, decentralized organizations, and more. However, Ethereum faces challenges of scalability as the network grows and security as smart contracts are vulnerable to hacks.

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52 views2 pages

Ethereum

Ethereum is a decentralized, open-source blockchain platform launched in 2015 that allows developers to build decentralized applications (dApps) and smart contracts. It is the second largest cryptocurrency after Bitcoin. Ethereum's programming language Solidity allows developers to create smart contracts that execute automatically based on predefined conditions. These smart contracts can be used for financial transactions, decentralized organizations, and more. However, Ethereum faces challenges of scalability as the network grows and security as smart contracts are vulnerable to hacks.

Uploaded by

samuel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Ethereum

Ethereum is a decentralized, open-source blockchain-based platform that enables developers to build


decentralized applications (dApps) and smart contracts. Launched in 2015 by Vitalik Buterin, Ethereum is
the second-largest cryptocurrency by market capitalization, after Bitcoin.

One of the primary differences between Ethereum and Bitcoin is that Ethereum is not just a
cryptocurrency but also a platform for decentralized applications. Ethereum's programming language,
Solidity, allows developers to create smart contracts that execute automatically when certain conditions
are met. These smart contracts can be used for a variety of purposes, from automating financial
transactions to creating decentralized autonomous organizations (DAOs).

Ethereum's blockchain is also different from Bitcoin's in that it allows for more complex transactions and
computations. Bitcoin's blockchain is limited to simple transactions, whereas Ethereum's blockchain
allows for the execution of complex calculations, making it more versatile.

The Ethereum network also has its cryptocurrency, called Ether (ETH). Ether is used as a means of
payment for transactions and smart contract executions on the Ethereum network. Ether can also be
traded on cryptocurrency exchanges like other cryptocurrencies.

One of the key advantages of Ethereum is its decentralization. Because the Ethereum network is
decentralized, there is no central point of failure, and the network is resistant to censorship and control
by any single entity. This makes it attractive to those who value privacy and security.

Another advantage of Ethereum is its ability to create and support decentralized applications. These
dApps can be used for a wide range of purposes, from decentralized finance (DeFi) to gaming and social
media platforms. The decentralized nature of these applications means that they are not controlled by
any single entity, making them more resilient and trustworthy.

Ethereum's technology has also led to the creation of new fundraising methods, such as initial coin
offerings (ICOs). These are fundraising events where a new cryptocurrency is created and sold to
investors in exchange for Ether or other cryptocurrencies. ICOs have become an increasingly popular
way for startups to raise funds for their projects.
However, Ethereum also has its challenges. One of the most significant issues is scalability. As more
users join the network and more transactions are processed, the network can become congested,
leading to slower transaction times and higher fees. To address this issue, Ethereum developers are
working on various solutions, such as the Ethereum 2.0 upgrade, which will introduce a new consensus
mechanism and improve the network's scalability.

Another challenge facing Ethereum is security. Smart contracts are vulnerable to hacks and exploits, and
there have been several high-profile incidents of smart contract hacks on the Ethereum network. To
address this issue, Ethereum developers are constantly working to improve the security of the platform
and develop new tools and best practices to prevent hacks and exploits.

In conclusion, Ethereum is a versatile blockchain-based platform that enables the creation of


decentralized applications and smart contracts. Its decentralized nature, ability to support complex
transactions and computations, and support for decentralized fundraising methods make it an attractive
option for developers and investors. However, scalability and security remain significant challenges for
the platform, and Ethereum developers must continue to work to improve the platform's capabilities
and address these issues.

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