Ethereum Fundamentals

[kevin1]

ote: “Ethereum” refers to the blockchain. “Ether” or the symbol “ETH” refers to the native token of the Ethereum blockchain.
What is Ethereum?

In 2015, the Ethereum blockchain launched as a much more versatile version of the Bitcoin payment system’s underlying blockchain technology. Ethereum is a decentralized, open source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dapps. Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation and performance of some sort of agreement. Ethereum brought the first practical solution for smart contracts to the blockchain space.
How does Ethereum work?

Like the Bitcoin blockchain, Ethereum utilizes nodes that are operated voluntarily in order to verify transactions in the network. Nodes can contain the entirety or a segment of Ethereum transaction history, the most recent information about the state of smart contracts, the balances of accounts, and more. At the foundation of Ethereum is the Ethereum Virtual Machine (EVM), which is the executable and trustless environment for smart contracts: computer protocols that facilitate, verify, and enforce the negotiation and performance of some sort of digital agreement. The EVM executes a contract with whatever rules the developer initially programmed, such as sending money from Alice to Bob. The EVM executes these programs through a bytecode language. Ethereum developers are able to use Ethereum programming languages such as Solidity and others to write smart contracts and build decentralized applications.
What is an Ethereum block?

A “block” in the Ethereum blockchain refers to a block of transactions that has been broadcast to the network. The Ethereum mainnet currently uses the Proof of Work consensus algorithm to verify blocks of transactions.
What is an Ethereum smart contract?

Ethereum pioneered practical smart contracts for the blockchain ecosystem. A smart contract is essentially a program coded for a specific purpose. Ethereum-based smart contracts have numerous applications. In banking and finance, smart contracts can help automate claims processing and enable real-time enforcement of regulatory control limits. In supply chain management, smart contracts are used to enforce asset tracking processes, as well as automate compliance and reporting. Smart contracts have limitless formats in order to support a wide range of industries.
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