• Cryptocurrency is digital currency that uses cryptography to secure transactions.
• Ethereum is an open-source, blockchain-based distributed computing platform and operating system featuring smart contract functionality.
• Ethereum provides a decentralized virtual machine known as the Ethereum Virtual Machine (EVM) which can execute scripts using an international network of public nodes.
What is Cryptocurrency?
Cryptocurrency is digital currency that uses cryptography to secure transactions and control the creation of new units. It operates independently of any central bank or government, making it a decentralized form of money. The most popular cryptocurrency is Bitcoin, but there are many others such as Litecoin, Ripple, and Ethereum.
What is Ethereum?
Ethereum is an open-source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. It was developed in 2015 by Vitalik Buterin with the aim of creating an alternative to existing cryptocurrencies like Bitcoin. It has since grown into one of the most widely used platforms for developing decentralized applications (dApps).
How Does Ethereum Work?
At its core, Ethereum provides a decentralized virtual machine known as the Ethereum Virtual Machine (EVM) which can execute scripts using an international network of public nodes. Each node stores a copy of all contracts stored on the blockchain and runs them when triggered by an external event or transaction from another user on the network. This allows developers to create applications that run exactly as programmed without any risk of censorship or fraud—a feature that makes it ideal for financial services and other industries where trust and security are paramount concerns.
What Are Smart Contracts?
Smart contracts are self-executing contracts written in code which allow parties to exchange money, property or anything else of value in a transparent way without needing third party intermediaries such as lawyers or banks. Smart contracts are stored on the blockchain and executed when certain conditions are met—for example, if one party pays another party X amount then Y action will take place automatically without either party having to manually initiate it or monitor it over time. This makes smart contracts incredibly useful for various industries as they reduce cost and increase efficiency while providing greater security than traditional methods of exchanging value between two parties.
In conclusion, Ethereum is a powerful platform for creating decentralized applications using smart contracts that run on a global network of computers secured by cryptography technology. Its ability to facilitate trustless agreements between parties makes it particularly attractive for use cases across multiple industries including finance, healthcare, supply chain management and more.