Ethereum
Ethereum is an open-source blockchain network created by Vitalik Buterin in 2015. In addition to supporting crypto ETH transfers, it introduced smart contracts, enabling developers to build decentralized applications (DApps) on the blockchain. Ethereum's programmability allows developers to automate complex protocols and business logic through code.
Smart Contract
Smart contracts are self-executing programs running on the blockchain. When predefined conditions are met, the contract automatically performs actions, e.g., transferring funds, storing data. Common use cases include DeFi, NFTs, DAOs, etc. Their code and transaction records are transparent and immutable once deployed, ensuring their fairness and security.
How Does Ethereum Support Smart Contracts
The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts. Developers write contract code in languages which is then compiled and deployed to the Ethereum network. Each contract execution consumes Gas to compensate miners/validators for computational resources.