Ethereum is a decentralized network (often referred to as “the world computer”), created by Vitalik Buterin in 2013. Its network consists of an open-source, globally decentralized computing infrastructure, which executes programs called smart contracts. This network is fueled by a cryptocurrency named ether (ETH).

Since its ICO in 2015, Ethereum has relied on Proof of Work (PoW). Ethereum’s first block was mined in July 2015, although plans have been made to migrate to a Proof of Stake (PoS) consensus model, despite several setbacks.

Unlike Bitcoin, Ethereum is based on an account model (vs. UTXO) to record state changes. At its core, Ethereum relies on a Virtual Machine (EVM) with two types of addresses: externally owned addresses (EOAs) and contract addresses that are deployed on the EVM.

As of March 2020, Ethereum was the second-largest cryptocurrency by market capitalization. It has popularized the use of smart contracts, and thousands of teams are working on third-party solutions on the network for real business applications.