Ethereum Overview
- What is Ethereum?
Ethereum is a community-run technology that powers the cryptocurrency Ether (ETH) and thousands of decentralized applications. It is a network made up of many communities and a set of tools that enable people to transact and communicate without being controlled by a central authority. Users can keep control of their own data and what is being shared.
Ethereum is more than just a platform for digital money. It is a home to global payments, applications, and a booming digital economy that includes bold new ways for creators to earn online. It's open to everyone, wherever they are in the world, as long as they have internet access.
Ethereum aims to create a fairer financial system, where billions of people who can’t open bank accounts or have their payments blocked can participate. Ethereum's decentralized finance (DeFi) system never sleeps or discriminates. With just an internet connection, users can send, receive, borrow, earn interest, and even stream funds anywhere in the world.
Ethereum also supports the creation and use of non-fungible tokens (NFTs), representing anything that can be owned. These tokens can be used in innovative ways, such as tokenizing art to automatically receive royalties every time it's re-sold, or using a token for something owned to take out a loan.
Ethereum's network is run by thousands of volunteers around the globe, known as nodes, which contribute to its decentralized nature. There is also an ongoing roadmap of interconnected upgrades aimed at making the network more scalable, secure, and sustainable.
Distinguishing itself from Bitcoin, Ethereum is not just a payment network but more like a marketplace of financial services, games, social networks, and other apps that respect users' privacy and cannot censor them. It's programmable, allowing users to build and deploy decentralized applications on its network.
In summary, Ethereum is the foundation for our digital future, providing a platform for a more private and equitable internet, and serving as a hub for financial services accessible to everyone with an internet connection.
Popular Apps on Ethereum
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Frequently asked questions
Ethereum is a technology that powers digital money, global payments, and decentralized applications. It has built a digital economy and provides new ways for creators to earn online. It is open to everyone with an internet connection.
Ethereum is a network that enables people to transact and communicate without being controlled by a central authority. It has its own cryptocurrency, Ether, which is used to pay for certain activities on the Ethereum network.
Ether is the cryptocurrency powered by the Ethereum network. It can be used to pay for activities on the network and can be purchased in any amount, not necessarily as a whole unit.
Both Ethereum and Bitcoin allow you to use digital money without banks or payment providers. However, Ethereum is programmable, enabling the building and deployment of decentralized applications on its network. While Bitcoin is primarily a payment network, Ethereum is a marketplace of financial services, games, social networks, and other apps that respect your privacy and cannot censor you.
Ethereum is used for a wide range of applications. It enables global payments and decentralized finance (DeFi) systems. Anything that can be owned can be represented, traded, and put to use as non-fungible tokens (NFTs) on Ethereum. Ethereum services are open by default and work without any personal info.
Cryptocurrency is a form of digital money powered by cryptography. Unlike traditional financial services, cryptocurrencies allow transactions to occur directly between sender and recipient without a central authority, providing more privacy and control over your funds.
A blockchain is a database of transactions that is updated and shared across many computers in a network. Every time a new set of transactions is added, it's called a “block,” hence the name blockchain. Blockchains like Ethereum are secure and use cryptographic techniques to ensure the safety of funds.
A "smart contract" is simply a program that runs on the Ethereum blockchain. It's a collection of code (its functions) and data (its state) that resides at a specific address on the Ethereum blockchain.
Smart contracts are a type of Ethereum account. This means they have a balance and can be the target of transactions. However they're not controlled by a user, instead they are deployed to the network and run as programmed. User accounts can then interact with a smart contract by submitting transactions that execute a function defined on the smart contract. Smart contracts can define rules, like a regular contract, and automatically enforce them via the code. Smart contracts cannot be deleted by default, and interactions with them are irreversible.
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