Different from Bitcoin protocol, the design of Ethereum is very flexible and adaptable. Creating new applications on the platform of Ethereum is very simple, and anyone can use the applications on the platform safely.
Ethereum is a programmable blockchain. Instead of giving users a series of preset operations (such as bitcoin transactions), it allows users to create complex operations according to their own wishes. In this way, it can be used as a platform for various types of decentralized blockchain applications, including but not limited to cryptocurrency.
In a narrow sense, Ethereum refers to a series of protocols that define decentralized application platforms. Its core is the Ethereum Virtual Machine ("EVM"), which can encode any complex algorithm. In computer science terminology, Ethereum is "Turing complete". Developers can use other friendly programming languages (such as JavaScript and Python) as models to create applications running on the Ethereum simulator.
Like other blockchains, Ethereum has a peer-to-peer network protocol. The Ethereum blockchain database is maintained and updated by many nodes connected to the network. Each network node runs the Ethereum simulator and executes the same instructions. Therefore, people sometimes call Ethereum "the world computer".
This large-scale parallel operation that runs through the whole Ethernet is just to make the operation more efficient. In fact, this process makes the operation on the Ethernet workshop slower and more expensive than that on the traditional "computer". However, each Ethereum node runs the Ethereum virtual machine to maintain the consistency of the entire blockchain. Decentralization makes Ethereum highly fault-tolerant, guarantees zero downtime, and can keep the data stored in the blockchain unchanged forever, resisting censorship.
The platform itself has no characteristics and no value. Similar to programming language, its use is decided by entrepreneurs and developers. However, it is obvious that some application types can benefit from the functions of Ethereum more than others. Ethereum is especially suitable for those applications that automatically interact directly between points or promote group cooperation activities across networks.
For example, coordinating the application of peer-to-peer markets or automating complex financial contracts. Bitcoin enables individuals to exchange money without resorting to financial institutions, banks or other intermediaries such as the government. The influence of Ethereum may be more profound.
Theoretically, any complex financial activity or transaction can be automatically and reliably carried out in Ethereum through code. In addition to financial applications, any application scenarios that require high trust, security and durability, such as asset registration, voting, management and Internet of Things, will be greatly influenced by the platform of Ethereum.