6 Essential Parts of Ethereum
Ethereum has drastically changed the crypto industry and is one of the most popular blockchains. Let’s learn about the essential parts of the Ethereum network.
Ethereum
In a nutshell, Ethereum is an open-source blockchain-based distributed computing platform that enables developers to create and run all sorts of applications through the use of smart contracts.
Smart Contract
A smart contract is a computer program that can trigger a certain action when predetermined conditions are met. Smart contracts are at the core of decentralized finance (DeFi) applications.
Solidity
Solidity is the programming language that is used to build smart contracts for various blockchains, including Ethereum.
Ethereum Virtual Machine
The Ethereum Virtual Machine, also known as EVM, is the computation engine that manages the creation and execution of smart contracts. In simple terms, the EVM turns smart contract code into instructions that the Ethereum platform can read and execute.
Gas
When you conduct a transaction or execute a smart contract on Ethereum, you need to pay an execution fee. The execution fee that is paid in ether (ETH) is known as “gas fees” or simply “gas”.
Ether
Ether, also known as ETH, is the native cryptocurrency of Ethereum. ETH is used to pay for network fees when making transactions. ETH is also needed when creating or executing smart contracts on Ethereum.
