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The Enterprise Ethereum Alliance (EEA) has some big-name founding members too, including Microsoft, Intel, and JPMorgan Chase, according to The Motley Fool. “The adoption of Ethereum by the corporate world,” says CNBC, “means it could eventually be bigger than its early stage rival.” That means it’s time to get to know the Ethereum platform, including its features and applications, and what makes Ethereum different from Bitcoin. Our “Ethereum Explained” Ethereum tutorial video lays it all out for you, and here we’ll cover what’s discussed in the video. What is Ethereum? Ethereum is a blockchain-based computing platform that enables developers to build and deploy decentralized applications-meaning not run by a centralized authority. You can create a decentralized application for which the participants of that particular application are the decision-making authority. Blockchain Career Guide A Guide to Becoming a Blockchain DeveloperDOWNLOAD NOWBlockchain Career Guide Ethereum Features Ether: This is Ethereum’s cryptocurrency. Smart contracts: Ethereum allows the development and deployment of these. Ethereum Virtual Machine: Ethereum provides the underlying technology-the architecture and the software-that understands smart contracts and allows you to interact with it. Decentralized applications (Dapps): Ethereum allows you to create consolidated applications, called decentralized applications. A decentralized application is called a Dapp (also spelled DAPP, App, or DApp) for short. Decentralized autonomous organizations (DAOs): Ethereum allows you to create these for democratic decision-making. These are the essential features of Ethereum and before going deep into the Ethereum tutorial, let’s discuss each of these features in more detail. 1. Ether (ETH) is Ethereum’s cryptocurrency. It is the fuel that runs the network. It is used to pay for the computational resources and the transaction fees for any transaction executed on the Ethereum network. Like Bitcoins, ether is a peer-to-peer currency. Apart from being used to pay for transactions, ether is also used to buy gas, which is used to pay for the computation of any transaction made on the Ethereum network. Also, if you want to deploy a contract on Ethereum, you will need gas, and you would have to pay for that gas in ether. So gas is the execution fee paid by a user for running a transaction in Ethereum. Ether can be utilized for building decentralized applications, building smart contracts, and making regular peer-to-peer payments. 2. Smart Contracts Smart contracts are revolutionizing the way how traditional contracts worked, which is why you need to know about them in this Ethereum tutorial. A smart contract is a simple computer program that facilitates the exchange of any valuable asset between two parties. It could be money, shares, property, or any other digital asset that you want to exchange. Anyone on the Ethereum network can create these contracts. The contract consists primarily of the terms and conditions mutually agreed on between the parties (peers). The primary feature of a smart contract is that once it is executed, it cannot be altered, and any transaction done on top of a smart contract is registered permanently-it is immutable. So even if you modify the smart contract in the future, the transactions correlated with the original contract will not get altered; you cannot edit them. The verification process for the smart contracts is carried out by anonymous parties of the network without the need for a centralized authority, and that’s what makes any smart contract execution on Ethereum a decentralized execution. The transfer of any asset or currency is done in a transparent and trustworthy manner, and the identities of the two entities are secure on the Ethereum network. Once the transaction is successfully done, the accounts of the sender and receiver are updated accordingly, and in this way, it generates trust between the parties. a) Smart Contracts Vs. Traditional Contract Systems In conventional contract systems, you sign an agreement, then you trust and hire a third party for its execution. The problem is that in this type of process, data tampering is possible. With smart contracts, the agreement is coded in a program. A centralized authority does not verify the result; it is confirmed by the participants on the Ethereum blockchain-based network. Once a contract is executed, the transaction is registered and cannot be altered or tampered, so it removes the risk of any data manipulation or alteration. Let’s take an example in which someone named Zack has given a contract of $500 to someone named Elsa for developing his company’s website. The developers code the agreement of the smart contract using Ethereum’s programming language. The smart contract has all the conditions (requirements) for building the website. Once the code is written, it is uploaded and deployed on the Ethereum Virtual Machine (EVM). EVM is a runtime compiler to execute a smart contract. Once the code is deployed on the EVM, every participant on the network has a copy of the contract. When Elsa submits the work on Ethereum for evaluation, each node on the Ethereum network will evaluate and confirm whether the result given by Elsa has been done as per the coding requirements, and once the result is approved and verified, the contract worth $500 will be self-executed, and the payment will be paid to Elsa in ether. Zack’s account will be automatically debited, and Elsa will be credited with $500 in ether. Smart Contract - Ethereum The Ethereum tutorial video includes a demo on the deployment of an Ethereum smart contract. Take a deep dive on Bitcoins, Hyperledger, Ethereum, and Multichain Blockchain platforms with the Blockchain Certification Training Course! 3. Ethereum Virtual Machine EVM, as mentioned above in this Ethereum tutorial, is designed to operate as a runtime environment for compiling and deploying Ethereum-based smart contracts. EVM is the engine that understands the language of smart contracts, which are written in the Solidity language for Ethereum. EVM is operated in a sandbox environment-basically, you can deploy your stand-alone environment, which can act as a testing and development environment, and you can test your smart contract (use it) “n” number of times, verify it, and then once you are satisfied with the performance and the functionality of the smart contract, you can deploy it on the Ethereum main network. Any programming language in the smart contract is compiled into the bytecode, which the EVM understands. This bytecode can be read and executed using the EVM. 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