What Is Ethereum?

Ethereum cryptocurrency (Ethereum, Ether) is a virtual coin and platform used to develop online services that are decentralized and based on blockchain technology. It is a unique development whose creator is Vitalik Buterin. When launching the project, the development team pursued the main goal - to provide the cryptocurrency community with a virtual coin devoid of the disadvantages of BTC. Despite a number of common points, Ethereum and Bitcoin can hardly be called similar. They have many differences, including in the technologies and characteristics used. The appearance of ETH gave an impetus to the development of new projects, including those based on smart contracts. With this in mind, we can make an intermediate conclusion of what Ethereum is in simple terms. The term Ethereum refers to a powerful platform designed to create and run decentralized blockchain-based applications using smart contracts. Ether (ETH) is the monetary unit of the mentioned platform, which serves two functions:
  • It is used as a unit for settlement.
  • It provides the implementation of smart contracts, playing the role of "fuel" for the cryptocurrency network.