Decentralized application (DApp) platform Ethereum is a worldwide, open-source blockchain that is supported by smart contracts and includes the native digital currency ether (ETH). When the network was first introduced in 2015, it was intended to go beyond Bitcoin’s core use as a peer-to-peer (P2P) digital money by including a platform that could be used to implement smart contracts and more intricate structures, like decentralized autonomous organizations (DAOs). 2
On Ethereum, programmatic conditions can be used to regulate the flow of digital wealth. Its native currency, ether, is used for three main things:
- To store value in ETH
- To settle transactions by allowing users to send or receive payments in ETH
Initiating the second wave of innovation in blockchain technology, Ethereum consolidated its own distinct position within the ecosystem of digital currencies by building upon the use cases made possible by Bitcoin. In its final form, Ethereum aims to be the top digital currency platform that is compatible with smart contracts.
- 1 Ethereum.org. https://ethereum.org/.
- 2 Decentralized applications (DApps) are applications, programs, or tools that utilize smart contracts built into the Ethereum network. Decentralized Autonomous Organizations (DAOs) are organizations that function independently of a central governing body and are an autonomous application of a DApp.