Ethereum — The Most Popular Open-Source Blockchain Platform

Fintelics
5 min readNov 10, 2021

Ethereum — The Most Popular Open-Source Blockchain Platform

Ethereum, the second-most popular cryptocurrency after Bitcoin, is a decentralized, open-source, and distributed computing platform. It enables the creation of smart contracts and decentralized apps, also known as DApps. Smart contracts are protocols that authenticate, facilitate, or impose the negotiation and performance of some sort of agreement. For example, it can be used to denote a legal contract imitating the logic of contractual clauses or a financial contract signifying responsibilities of the automated flows of value.

Put simply, a smart contract is an auto-implementing, programmed agreement recorded on the Ethereum blockchain. It functions depending on an if, then logic, so that if x action happens, then y action occurs. Here’s how the Ethereum Foundation defines smart contracts:

“Smart contracts are applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”

Now, let’s see what that means:

  • Downtime: The apps never shut down without giving prior notification and can never be switched off.
  • Censorship: Ethereum nodes are spread all across the world, removing censorship from a central authority.
  • Fraud: Smart contracts cannot be manipulated, tampered with, modified, or hacked.
  • Third-Parties: The contract self-implements and does not require a central authority.

How Does Ethereum Work?

Ethereum functions on a blockchain network like all other cryptocurrencies, which is nothing but a decentralized, distributed public ledger where all transactions are verified and recorded. This means that every participant on the Ethereum network holds a similar copy of this ledger. This allows them to see all the previous transactions. The network isn’t run or managed by any central authority; rather, all the distributed ledger holders manage the network.

Typically, blockchain transactions function on the cryptography model to keep the network safe and authenticate transactions. People mine or extract…

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Fintelics

Software consulting company that focuses on emerging technology such as AI, Blockchain, Cloud Computing, and Data Engineering, MERN Stack, and Fintech