Ethereum is a blockchain-based platform that functions in a similar way as Bitcoin, but goes beyond Bitcoins operating scope.
Wait... It's like Bitcoin?
Well, it is a cryptocurrency, it just goes a bit beyond that. Ethereum, launched in 2015, is a decentralized computing platform that operates with smart contracts and decentralized applications (DApps). Ethereum expands the blockchain's capabilities beyond financial transactions, opening doors to a wide range of applications that take the blockchain to a whole new level.
What do you mean with Smart Contracts?
Don't worry, they are not actually smart 🥸... Smart contracts are self-executing agreements coded onto the Ethereum blockchain. These agreements automatically execute when predefined conditions are met. Smart contracts enable secure and trustless transactions without the need for intermediaries, revolutionizing various industries.
Key Features and Benefits:
Programmability: Ethereum's smart contracts are programmable and can execute complex operations. They allow developers to create custom logic, automate processes, and build decentralized applications with real-world use cases.
Transparency and Security: Smart contracts deployed on the Ethereum blockchain are transparent and visible to all participants. Once recorded, they cannot be altered, providing immutability and security.
Tokenization and Crowdfunding: Ethereum's native cryptocurrency, Ether (ETH), can be used to create and exchange custom tokens. This feature has empowered crowdfunding initiatives through Initial Coin Offerings (ICOs) and other tokenization models.
Applications and Impact:
This technology made posible hundreds of new applications, some of the most well-known ones are:
Gaming and Non-Fungible Tokens (NFTs): Ethereum's programmability has driven the rise of blockchain-based gaming and the creation of NFTs. NFTs represent unique digital assets like artwork, collectibles, and virtual real estate, allowing verifiable ownership and new monetization possibilities.
Supply Chain and Identity Management: Ethereum's smart contracts facilitate transparent supply chain management by tracking and verifying product origins and certifications. It also offers potential for secure identity management systems, ensuring data privacy and control.
Governance and DAOs: Ethereum supports Decentralized Autonomous Organizations (DAOs) that enable decentralized decision-making and governance structures. These DAOs empower participants to vote on proposals and shape the future of the organizations they are part of.
For a complete and classified list, you can visit the following link: https://docs.arch.finance/arch-knowledge-base/getting-started/atcs