Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. It was created by Vitalik Buterin in 2013 and has since become one of the most popular cryptocurrencies. Ethereum allows developers to build and deploy decentralized applications (DApps) with their blockchain network. It can be used for various purposes, including financial transactions, digital asset management, prediction markets, etc.
One significant advantage of Ethereum over other cryptocurrency networks is its ability to execute code through “smart contracts.” Smart contracts are self-executing pieces of code written into an agreement between two parties that automatically runs when certain conditions are met; this reduces counterparty risk while also eliminating intermediaries from the equation entirely – making it much faster than traditional methods like banks or lawyers who need to verify each transaction before they take place manually. Additionally, because these intelligent contract agreements exist on an immutable distributed ledger technology (DLT), they cannot be tampered with once set in motion – meaning all participants have complete trust in their outcomes regardless if they know each other personally or not!
Finally, Ethereum’s native token, Ether (ETH), acts as “gas” for running these DApps across its blockchain network – allowing users to pay fees associated with executing their programs instead having them taken out upfront like many centralized services do today; this helps make sure everyone involved gets paid fairly for their work without any hidden costs along the way!
Altogether this makes using Ethereum incredibly secure yet still cost-effective.