What is Ethereum & how does it work?

The Ethereum Foundation envisioned Ethereum as a decentralized computing platform that enables anyone to create, store, and run smart contract-based Decentralized Applications, or DApps. As the below diagram shows, an Ethereum blockchain network is a decentralized Peer-to-Peer ( P2P) network of Ethereum clients, representing network nodes.

What is an Ethereum blockchain network?

As the below diagram shows, an Ethereum blockchain network is a decentralized Peer-to-Peer ( P2P) network of Ethereum clients, representing network nodes. An Ethereum client refers to any node that can verify the new transaction, execute the smart contract, and process new blocks of the chain.

What is the Ethereum Virtual Machine?

At the core of the Virtual Computer, sits the Ethereum Virtual Machine (or EVM) that is in charge of "executing" transactions to alter the data stored in it. You can think of it as the operating system of a distributed computer. Among other things, it stores the ledger that keeps track of the ether balances of each account.

What's the difference between Bitcoin and Ethereum?

Launched in 2015, Ethereum builds on Bitcoin's innovation, with some big differences. Both let you use digital money without payment providers or banks. But Ethereum is programmable, so you can also build and deploy decentralized applications on its network.