Introduction

In this universe, there’s a single, canonical computer—known as the Ethereum Virtual Machine (EVM)—and all nodes on the network agree on its state. Everyone who participates in the Ethereum network keeps a copy of the EVM’s state with them.

On top of that, anyone can broadcast a request for this computer to perform arbitrary computation. When this happens, other participants on the network verify, validate, and carry out (“execute”) whatever computation was requested. This execution causes a state change in the EVM that is committed and propagated throughout the entire network.

Requests for computation are called transaction requests; they’re stored alongside the EVM’s present state on the blockchain, which is stored and agreed upon by all nodes.

The purpose of ether (ETH) is to allow for a market for computation; it’s what you use to pay for transactions you want to be executed on the EVM.

‍

Metrics (as of 24th May, 2022)

‍

What is Ethereum?

Ethereum is a public blockchain network that allows users to write and execute smart contracts—automated code that will run on the Ethereum Virtual Machine (EVM).

When you send a transaction request to the EVM, it will run your code on its own machine. The EVM is a blockchain computer that lives on every Ethereum node.

The EVM “machine” runs with ether, which is Ethereum’s cryptocurrency. Ether is also used as an incentive for nodes to participate in the network.

“Ether” is the cryptocurrency of the Ethereum network. Ether’s purpose is to allow for a market for computation on the Ethereum Virtual Machine (EVM).

The EVM and its state are agreed upon by all participants in the Ethereum network. Any participant can broadcast a transaction request, which other participants will verify, validate, and execute as needed. The result of this execution is a state change in the EVM, which is committed and propagated throughout the entire network.

Ether is rewarded to miners for verifying transactions and committing them to the blockchain.

‍

What makes Ethereum unique?

Ethereum’s principal innovation was designing a platform that allowed it to execute smart contracts using the blockchain, which further reinforces the already existing benefits of smart contract technology.

Ethereum’s blockchain was designed, according to co-founder Gavin Wood, as a sort of “one computer for the entire planet,” theoretically able to make any program more robust, censorship-resistant, and less prone to fraud by running it on a globally distributed network of public nodes.

But what are smart contracts? They’re computer programs that automatically execute the actions necessary to fulfil an agreement between several parties on the internet. They were designed to reduce the need for trusted intermediates between contractors, thus reducing transaction costs while also increasing transaction reliability.

In contrast to most other cryptocurrencies, Ethereum takes a broader view of what blockchain technology can provide. The Ethereum platform allows developers to build decentralized apps, which are able to run without any risk of censorship, fraud, or third-party interference.

‍

Brief history of Ethereum

27th November 2013 – ETH whitepaper was published by Ethereum founder Vitalik Buterin 1st April 2014 – ETH yellow paper, a technical definition of the protocol was released by Dr. Gavin Wood November 2017 – The first Ethereum decentralized application (DAPP) CryptoKitties was launched 1st December 2022 – The first block in the Beacon Chain genesis was released marketing the beginning of ETH 2.0 In contrast to most other cryptocurrencies, Ethereum takes a broader view of what blockchain technology can provide. The Ethereum platform allows developers to build decentralized apps, which are able to run without any risk of censorship, fraud, or third-party interference.

‍

Conclusion

Ethereum has pioneered the concept of a blockchain smart contract platform. Smart contracts are computer programs that automatically execute the actions necessary to fulfil an agreement between several parties on the internet. They were designed to reduce the need for trusted intermediates between contractors, thus reducing transaction costs while also increasing transaction reliability.