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    Ethereum Review
    • Updated 2024-01-30 14:18:47

    What is Ethereum?

    Ethereum is an open-source, blockchain-based platform known for its own cryptocurrency, Ether (ETH). But it's more than just a digital currency; it's a decentralized platform for building and running smart contracts and decentralized applications (DApps) without downtime, fraud, control, or interference from a third party.

    The Origin of Ethereum

    Ethereum was proposed in late 2013 by programmer Vitalik Buterin and development was crowdfunded in 2014. It went live on 30 July 2015, with 72 million coins minted. This accounts for about 65 percent of the total circulating supply in April 2020.

    How Ethereum Works

    Ethereum enables developers to build and deploy decentralized applications. A decentralized application or DApp serves some particular purpose to its users. Ether, the platform's own cryptocurrency, is used for running DApps on its network.

    Smart Contracts on Ethereum

    One of the biggest features of Ethereum is the use of smart contracts. These are contracts written in code, which automatically execute when certain predetermined conditions are met. They run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.

    Ethereum's Impact and Challenges

    Ethereum has opened up a new realm of possibilities in decentralized finance and other applications. However, it faces challenges such as scalability, energy consumption, and transitioning to a proof-of-stake consensus mechanism to address environmental concerns.