Ethereum and Smart Contracts: Expanding Blockchain’s Potential
Ethereum, launched in 2015, took blockchain technology a step further by introducing smart contracts—self-executing agreements with terms written directly into code. Unlike Bitcoin, which primarily serves as digital money, Ethereum is a platform for decentralized applications (dApps). These dApps span industries like finance, gaming, and healthcare, enabling innovations such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
The flexibility of Ethereum’s programmable blockchain has made it a hub for developers and entrepreneurs. However, its popularity has also led to challenges like network congestion and high transaction fees. To address these issues, Ethereum is transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism through its Ethereum 2.0 upgrade, which aims to improve scalability and reduce energy consumption.
Ethereum’s ability to support complex applications positions it as a leader in the blockchain space. As the ecosystem grows, its influence on the future of decentralized technology continues to expand, offering new opportunities for innovation and investment.