Ethereum - 10 things to know with detail
- 1. What is Ethereum: Ethereum is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It was proposed by Vitalik Buterin in late 2013 and went live on July 30, 2015.
- 2. Ether (ETH): Ether is the native cryptocurrency of the Ethereum platform. It is used to pay for transaction fees and computational services on the network. Ether is also traded on various cryptocurrency exchanges.
- 3. Smart contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce the terms of the agreement and eliminate the need for intermediaries.
- 4. Decentralized applications (dApps): dApps are applications that run on a decentralized network instead of a centralized server. These applications are open-source and operate autonomously without any single entity controlling them.
- 5. Ethereum Virtual Machine (EVM): The EVM is the runtime environment for executing smart contracts on the Ethereum network. It is a Turing complete virtual machine that allows developers to write code in various programming languages.
- 6. Proof of Work to Proof of Stake: Ethereum is in the process of transitioning from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) mechanism. This upgrade, known as Ethereum 2.0, aims to improve scalability, security, and energy efficiency.
- 7. Ethereum Improvement Proposals (EIPs): EIPs are technical standards and proposals for changes to the Ethereum network. They are submitted by developers and community members to improve the functionality and performance of the platform.
- 8. Decentralized Finance (DeFi): DeFi refers to a set of financial services and applications built on top of the Ethereum blockchain. These include decentralized exchanges, lending platforms, and stablecoins that enable users to access financial services without the need for traditional intermediaries.
- 9. Non-Fungible Tokens (NFTs): NFTs are unique digital assets that represent ownership of a specific item or piece of content. They are created using smart contracts on the Ethereum blockchain and have gained popularity in the art, gaming, and collectibles industries.
- 10. Ethereum 2.0: Ethereum 2.0, also known as Serenity, is a major upgrade to the Ethereum network that aims to improve scalability, security, and sustainability. It will introduce features such as sharding, a new PoS consensus mechanism, and a more efficient transaction processing system.