What is Ethereum?
Ethereum is a worldwide network of interconnected computers (nodes) that enforce, execute and validate programs in a decentralized manner without requiring a server, memory, CPU power, or any other computing function, as it is all provided by thousands of ethereum nodes scattered across the world. In short, ethereum is a global computer.
This global computer allows applications, called Decentralized Apps or DApps, through the use of smart contracts – simple javascript like code – to run exactly as they have been programmed, requiring no permission, having no intermediary, in a largely immutable manner, lacking any downtime, censorship, fraud, or third party interference.
It further ensures the operation of ETH – ethereum’s digital currency which turns money into pure code – opening many new opportunities, including machine to machine payments, one click online commerce, decentralized autonomous organizations as well as completely new business models.
The platform has attracted significant interest by many household brands which are positioning for what some have called a fourth industrial revolution.
The reasons might become apparent as you read this article which is mainly concerned with high-level concepts. You might find some parts to be far too advanced or far too simple. That is because this introduction tries to provide a holistic answer to the title’s question. As such, some parts might be useful even for experts.
To aid you in finding potential sections you might wish to skip, the decentralized digital currency is firstly introduced in some detail, explaining Nakamoto’s consensus and chain splits in their own subsections. You might find more interesting one specific aspect of the digital currency, codable money, which has a section of its own. That is followed by explaining ethereum’s potential role in bringing a future where machines can act by holding, transferring and accepting value, giving them a very primitive level of intelligence.
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