Ethereum is a decentralized, open-source blockchain platform that enables developers to build decentralized applications (DApps) on top of its blockchain technology. Ethereum was created by Vitalik Buterin in 2013, and it went live on July 30, 2015. It has its own cryptocurrency called Ether (ETH), which is used to fuel transactions and smart contracts on the Ethereum network.
Unlike Bitcoin, which is primarily used as a digital currency, Ethereum's blockchain technology provides a platform for developers to build decentralized applications that can be used to execute complex financial transactions, create smart contracts, and more. This allows for the creation of new decentralized applications that can potentially change the way we interact with each other, our assets, and our data.
Ethereum uses a consensus mechanism called Proof of Stake (PoS) to secure the network and validate transactions. In PoS, validators, also known as "stakers," are chosen to validate transactions and add them to the blockchain based on the amount of ether they hold and are willing to "stake." This mechanism is seen as a more energy-efficient alternative to Bitcoin's Proof of Work (PoW) consensus mechanism.
One of the most notable features of Ethereum is its smart contract functionality, which allows developers to create self-executing contracts that automatically execute when certain conditions are met. Smart contracts can be used to automate a wide range of business processes, from financial transactions to supply chain management, and more. These contracts can potentially reduce the need for intermediaries, increase transparency, and improve efficiency in various industries.