Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and a group of developers, Ethereum goes beyond simple digital currency by offering a programmable environment for building on-chain logic.
At its core, Ethereum operates as a distributed global computer. It uses a blockchain to store not only transaction data but also the code and state of smart contracts. These contracts are self-executing programs that run exactly as programmed without downtime, fraud, or third-party interference.
The Ethereum Virtual Machine (EVM) is the runtime environment that executes these smart contracts. Developers write contracts in languages like Solidity, which are then compiled into bytecode understood by the EVM. Transactions and contract execution are validated by a network of nodes, ensuring the system’s integrity and transparency.
Ether (ETH) is the native cryptocurrency of Ethereum. It’s used to pay for transaction fees and computational services on the network. When users execute smart contracts or send ETH, they pay “gas,” which is a small fee that compensates miners (or validators, in Ethereum 2.0) for the work of processing and securing the network.
Gas fees vary based on network demand and complexity of operations. This mechanism helps prioritize transactions and prevent spam on the blockchain.
Ethereum has enabled a wide range of applications including decentralized finance (DeFi), NFTs (non-fungible tokens), gaming, supply chain tracking, and governance tools. Its flexibility has attracted a large developer community, making it one of the most widely used platforms in the blockchain space.
With the recent transition to Ethereum 2.0 and a proof-of-stake consensus mechanism, the network is also becoming more energy-efficient and scalable.
Ethereum is more than just a cryptocurrency—it’s a foundational platform for the decentralized internet. By combining programmable logic with the security of blockchain, Ethereum empowers users and developers to create trustless, transparent systems that could reshape finance, governance, and beyond.