Ethereum is an open-source, decentralized blockchain network that enables the creation and execution of smart contracts and decentralized applications (DApps).
At its core, Ethereum functions through a network of computers that run the Ethereum software and maintain a copy of the Ethereum blockchain. The Ethereum blockchain is a distributed database that contains a record of every transaction ever made on the network.
Ethereum employs a consensus mechanism known as Proof of Work (PoW) to ensure the authenticity and validity of transactions on the network. Miners use their computing power to solve complex mathematical problems in order to add new blocks to the blockchain and earn ether (ETH), the native cryptocurrency of the Ethereum network.
Smart contracts are self-executing programs that run on the Ethereum blockchain. Developers can write code for smart contracts using programming languages such as Solidity, and deploy them to the network. Once deployed, smart contracts automatically execute their programmed instructions when certain conditions are met, without the need for intermediaries or a trusted third party.
The Ethereum virtual machine (EVM) is a decentralized computer that executes smart contracts on the Ethereum network. All nodes on the network run a copy of the EVM, which ensures that smart contracts are executed in a consistent and tamper-proof manner.
In summary, Ethereum works through a decentralized network of computers that use a PoW consensus mechanism to validate transactions. Smart contracts are deployed to the network and executed by the Ethereum virtual machine, enabling developers to create decentralized applications. ETH is the native cryptocurrency of the network and is used to pay for transaction fees and computational resources.
