Even if you are new to crypto, chances are you have heard of Ethereum. After Bitcoin, it is the second largest cryptocurrency by market capitalization.
In 2013, Vitalik Buterin, a Russian-Canadian programmer, first proposed Ethereum. He was inspired by Bitcoin, but he thought that it could do more than just be a digital currency.
Buterin believed that blockchain technology could be used to create a decentralized platform that would allow people to build applications with no third-party interference.
After raising money from a crowdfunding campaign, Ethereum was launched in 2015.
So, what is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third-party interference.
These apps are built on a custom-built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. That’s right, the whole world of NFTs became possible because of Ethereum.
Ethereum is also a cryptocurrency with its own native token, ETH.
ETH is used to pay for transaction fees and computational services on the Ethereum network. This is the value you see fluctuating on exchanges. Or the sale price of an NFT.
Ethereum is also working on a new version of its platform, Ethereum 2.0, which will offer scalability and increased security through a transition from proof-of-work to proof-of-stake.
Ethereum has brought us the first real-world application of blockchain technology. As we’ve seen since its inception, it is a platform with the potential to change the way we interact with the digital world.