What exactly is Ethereum?

What exactly is Ethereum?
After Bitcoin, Ethereum is the second-largest cryptocurrency by market capitalization. It’s also a decentralized computing platform capable of running a broad range of apps, including the full DeFi world.

After Bitcoin, Ethereum is the second-largest cryptocurrency by market capitalization. However, unlike Bitcoin, it was not designed to function as a digital currency.

After Bitcoin, Ethereum is the second-largest cryptocurrency in terms of market capitalization. But, unlike Bitcoin, it was never intended to be used as a kind of electronic money. Instead, Ethereum’s creators set out to create a new type of global, decentralized computing platform that extends the security and openness of blockchains to a wide range of applications.

The Ethereum blockchain is currently powering everything from financial tools to games to complicated databases. And only developers’ ideas may restrict their future possibilities. “Ethereum can be used to codify, decentralize, secure, and exchange just about anything,” according to the Ethereum Foundation, a charitable organization.

Ethereum has grown in popularity as an investment instrument and a means of storing money (and can be used, like Bitcoin, to send or receive value without an intermediary).

The Ethereum blockchain enables developers to create and run a wide range of apps, from games to advanced databases to complicated decentralized financial instruments, all without the need for a bank or other intermediary.

Smart contracts are used to create Ethereum-based apps. Smart contracts, like traditional paper contracts, define the conditions of a deal between two parties.

Smart contracts, unlike traditional contracts, automatically execute when the terms are satisfied, without the need for either party to know who is on the other side of the transaction – or for any form of a middleman.

Ethereum, like Bitcoin, is an open-source project run by a group of people rather than a single person. Anyone with access to the internet may run an Ethereum node and interact with the Ethereum network.

Smart contracts running on Ethereum’s decentralized blockchain allow developers to build complex applications that should run exactly as programmed without downtime, censorship, fraud, or third-party interference, much like Bitcoin’s decentralized blockchain allows any two strangers, anywhere in the world, to send or receive money without a bank in the middle.
Stablecoins (like DAI, which has its value set to the dollar via smart contract), decentralized financial applications (collectively known as DeFi), and other decentralized apps are popular Ethereum-based developments (or Dapps)

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