What is Ethereum?

What is Ethereum?

What is Ethereum?

Ethereum is basically just like Bitcoin, but with added capabilities. While the Bitcoin blockchain simply stores records of balances and transactions, the Ethereum platform allows decentralized apps (aka dapps) and smart contracts to be built and run on it.

Ethereum was created in 2014 by Vitalik Buterin. The cryptocurrency associated with the Ethereum platform is called Ether. Just like Bitcoin, it can be traded and used for purchases.

What is a smart contract?

A smart contract is a contract or agreement that is automatically enforced through the blockchain. (Link to glossary here)

In the beginning, Ethereum was the most widely-used blockchain platform for creating smart contracts. After all, this capability one of the major development goals of Ethereum. The Bitcoin protocol has since evolved, and is now able to support smart contracts. While smart contract functionality for Bitcoin is not yet as extensive as that of Ethereum, some may prefer it as it still allows the implementation of smart contracts without the security and privacy risks of the more complicated platform, Ethereum.

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