Ethereum is a decentralized, open-source blockchain platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.
Who invented Ethereum
Ethereum was created by Vitalik Buterin, a Russian-Canadian programmer and cryptocurrency researcher. In 2011, Buterin co-founded Bitcoin Magazine; a publication focused on cryptocurrency.
In 2014, Buterin published a white paper outlining his vision for A Next-Generation Smart Contract, and Decentralized Application Platform that would be more flexible and capable of running smart contracts and other applications. He proposed the development of Ethereum as a decentralized, open-source platform that would use a blockchain to record transactions and run smart contracts.
Buterin worked with a team of developers to build the Ethereum platform, and the first version of Ethereum was launched in 2015. Since then, Ethereum has become one of the most widely used blockchain platforms and has inspired the development of a wide range of decentralized applications (DApps).
What is Ethereum used for today?
Ethereum is used for a wide range of purposes, including:
- Running decentralized applications (DApps): Ethereum has a large and active developer community that contributes to its development and supports creating a wide range of decentralized applications (DApps). Ethereum is designed to be interoperable with other blockchain platforms, enabling it to integrate and exchange data with other systems easily. As a decentralized platform, no single entity or organization can control Ethereum. The platform is resistant to censorship and fraud, as no central control point can be compromised.
- Conducting secure financial transactions: Ethereum is used as a platform for decentralized finance (DeFi). DeFi applications allow users to lend, borrow, trade, and invest in a wide range of financial instruments without the need for intermediaries in a transparent and immutable manner, making it difficult to alter or hack.
- Storing and managing data: Organizations track and verify information with Ethereum. Maersk, the world’s largest shipping company, uses Ethereum to track cargo movement through its supply chain. The company’s platform, called TradeLens, allows shippers, freight forwarders, and other supply chain stakeholders to share real-time data about the location and status of cargo. Ethereum is also used to verify artworks’ authenticity and manages land and property records.
- Running smart contracts: Ethereum’s decentralized virtual machine (EVM) is used to execute smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The EVM runs the smart contract and executes its instructions, ensuring that the contract terms are enforced automatically.
- Issuing and managing tokens: Ethereum is used to issue and manage tokens, which are digital assets that can represent a wide range of assets, such as commodities, currencies, or even real estate. Tokens can be issued on the Ethereum blockchain and managed using smart contracts, making it easy to automate the management of these assets.