Ethereum is software running on a network of computers that ensures that data and small computer programs called smart contracts are replicated and processed on all the computers on the network, without a central coordinator. The vision is to create an unstoppable censorship-resistant self-sustaining decentralized world computer.
It extends the blockchain concepts from Bitcoin, which validates, stores, and replicates transaction data on many computers around the world (hence the term ‘distributed ledger’). Ethereum takes this one step further and also runs computer code equivalently on many computers around the world.
The role of smart contracts:
- Supply chain management;
- Employment agreements;
- Copyright protection.
Examples of successful Ethereum contracts:
- AXA’s flight insurance;
What does the Ethereum client software do? You can use it to:
- Connect to the Ethereum network;
- Explore Ethereum’s blockchain;
- Create new transactions and smart contracts;
- Run smart contracts;
- Mine for new blocks.
The vision of the Ethereum’s development team is to build an unstoppable censorship-resistant self-sustaining decentralized world computer that can perform calculations, store data, and allow communications. Follow the guide to learn more.