Ethereum is a blockchain platform that processes transactions and runs programs called smart contracts. These contracts automatically execute transactions and agreements as programmed, without intermediaries. Ethereum also has its own cryptocurrency called Ether (ETH), used to pay for transactions and computational services on the network. It’s a key player in decentralized applications (dApps) and decentralized finance (DeFi).
It’s clear to me now that Ethereum is the new currency of the Internet. It’s way ahead of where PayPal was in its day, and it’s much more exciting to its customers than PayPal ever was.
Gil Penchina, vice-president of eBay
In Simpler Terms
Think of Ethereum as a massive, global computer where developers can build and run their own applications. When certain conditions are met, these apps automatically execute specific actions without human intervention. For example, a smart contract could automatically release payment for a service once it’s confirmed done, streamlining the process without needing a middleman.
But Ethereum is not just about payments. The apps built on this platform range from games and social networks to complex financial services and even new organizational structures like decentralized autonomous organizations (DAOs).
