What is Ethereum?
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It was created in 2015 by Vitalik Buterin, a programmer and cryptocurrency researcher. Ethereum’s native cryptocurrency is called Ether (ETH), and it is used to pay for transactions and computational services on the network.
The Ethereum network allows developers to build decentralized applications that are not controlled by any single entity, making them resistant to censorship and fraud. Smart contracts are self-executing contracts with the terms of the agreement written directly into lines of code. These contracts can be used for a wide range of applications, such as supply chain management, financial systems, and online marketplaces.
Ethereum also has its own programming language called Solidity, which is used to write smart contracts on the Ethereum blockchain. The Ethereum Virtual Machine (EVM) is responsible for executing the code of smart contracts on the network.
Overall, Ethereum is a platform for building decentralized applications that can run without any downtime, censorship, fraud, or third-party interference.
The Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts on the Ethereum blockchain. It is a virtual machine that executes the code of smart contracts on the Ethereum network. The EVM is responsible for managing the state of the Ethereum blockchain, including the storage and execution of smart contract code.
The EVM is a Turing-complete virtual machine, meaning that it can execute any computations that a physical machine can perform. This allows for the creation of complex decentralized applications (dApps) on the Ethereum network. The EVM also provides a sandboxed environment for executing smart contract code, which helps to protect the integrity of the Ethereum blockchain.
Each smart contract deployed on the Ethereum blockchain is given its own address on the network, and the EVM manages the storage and execution of the contract’s code at that address. When a contract is called, the EVM retrieves the contract’s code from the blockchain and executes it. The EVM also manages the storage of contract data on the blockchain, ensuring that the data is stored in a decentralized and tamper-proof manner.
The EVM is a crucial component of the Ethereum network, as it enables the execution of smart contracts and the creation of decentralized applications on the Ethereum blockchain.
What is Smart Contract?
A smart contract is a self-executing contract with the terms of the agreement written directly into lines of code. Smart contracts are designed to be tamper-proof and self-executing, meaning that they can automatically enforce the terms of the agreement without the need for intermediaries or intermediaries’ involvement.
Smart contracts are typically used to facilitate, verify, and enforce the negotiation or performance of a contract. They can be used in a variety of industries, such as finance, supply chain management, and real estate.
The code of a smart contract is typically written in a programming language that is compatible with the blockchain platform it is running on, such as Solidity for Ethereum, and then deployed to the blockchain network. Once deployed, the contract can be interacted with by users on the network.
Smart contract code can be triggered by events or messages, and can in turn execute other smart contracts or make changes to the blockchain’s state, such as transferring assets or updating data. Because smart contracts are stored on the blockchain, they are transparent, tamper-proof, and auditable.
Overall, Smart Contract is a digital contract that allows for the automation of certain processes, reducing the need for intermediaries, increasing efficiency and security, and enabling new types of decentralized applications.