Introduction to Ethereum
Go Private Market Guide
March 26, 2025
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Ethereum is a decentralized, open-source blockchain platform launched in 2015 by Vitalik Buterin and co-founders. Unlike Bitcoin, which primarily serves as a digital currency, Ethereum is a programmable blockchain that enables developers to build decentralized applications (dApps) using smart contracts.
What Are Smart Contracts?
Smart contracts are self-executing programs that run on the blockchain when predefined conditions are met, eliminating the need for intermediaries. For instance, consider renting an apartment: instead of a landlord holding a deposit, a smart contract could automatically release it when the renter moves in.
Ethereum’s native currency, Ether (ETH), powers transactions and computational processes on the network. These computations require a transaction fee, known as gas, which prevents spam and incentivizes validators to maintain the network.
Why Ethereum?
Ethereum extends beyond digital currency, offering a foundation for decentralized finance (DeFi), non-fungible tokens (NFTs), and various blockchain innovations. While Bitcoin proved that decentralized money is viable, Ethereum posed a broader question: What else can blockchain achieve? Today, Ethereum is the backbone of DeFi protocols, NFT marketplaces, and decentralized autonomous organizations (DAOs).
For example, OpenSea, the leading NFT marketplace, runs on Ethereum. Artists mint digital art as NFTs using smart contracts, and buyers trade them with ETH. This creates a new digital economy, which we will explore further in later sections.