The Ethereum blockchain and its native token Ether were first described in a 2013 whitepaper by Vitalik Buterin and the blockchain went officially live in 2015. Ethereum is an open-source blockchain that facilitates decentralized applications (e.g. decentralized borrowing & lending, decentralized exchanges), digital ownership models (e.g. non-fungible tokens) and decentralized autonomous organisations (e.g. online communities with pooled funds) by leveraging smart contract technology.
Smart contracts are computer programs residing on the blockchain and that automatically execute in line with predefined rules. The flexibility in designing smart contracts and the interaction between smart contracts allow for the creation of complex decentralized applications.
Ethereum is currently undergoing its largest upgrade to Ethereum 2.0, which will result in a change in the consensus algorithm from proof-of-work to a proof-of-stake and aims to make the Ethereum platform more scalable and efficient.
Ethereum is often referred too as the first “world computer”.