The Ethereum blockchain is a decentralized, open-source blockchain platform that allows for the creation and execution of smart contracts. It was proposed by Vitalik Buterin in late 2013 and launched in 2015. Ethereum's native cryptocurrency is called Ether (ETH), which is used to facilitate transactions and incentivize participants in the network.
One of the key innovations of Ethereum is its ability to support smart contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute actions and enforce agreements without the need for intermediaries. Ethereum's programming language, Solidity, enables developers to write smart contracts and deploy them on the Ethereum blockchain.
The Ethereum blockchain operates using a consensus mechanism called Proof of Stake (PoS), although it previously used Proof of Work (PoW) when it initially launched. With PoS, participants (known as validators) can secure the network and create new blocks based on the amount of ether they hold and are willing to "stake" as collateral. This shift to PoS aims to make the Ethereum network more energy-efficient and scalable.
Ethereum has gained significant popularity and has become a leading platform for decentralized applications (DApps) and Initial Coin Offerings (ICOs). It offers a wide range of use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and more. The Ethereum blockchain has also introduced various upgrades and improvement proposals over time, with notable updates like Ethereum 2.0 aiming to enhance scalability and performance.
It's important to note that while Ethereum has been influential and widely used, there are other blockchain platforms with similar capabilities and different design choices, such as Cardano, Polkadot, and Solana.
