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Ethereum (ETH) is the second largest cryptocurrency after bitcoin. While Bitcoin has received the most media attention of all cryptocurrencies, Ethereum is growing rapidly. Experts expect Ethereum to dominate the market in the future.
Ethereum is a decentralized platform for applications. These applications can be anything, but the Ethereum network is optimized to follow certain rules while meeting certain criteria, such as a contract. An important application is the execution of smart contracts.
Smart contracts are contracts that are digitally recorded and automatically execute instructions based on input from the network. It's actually like programming. The terms of the contract are defined and what happens with certain results is defined. When the result is known to the network, the smart contract is automatically executed. In other words: if conditions A and / or B are met, then C will happen.
The advantage of smart contracts is that blockchain is a decentralized way of verifying and enforcing contracts. Decentralized means that there is no central server, unlike, for example, WhatsApp or Facebook. The decentralized aspect makes fraud or censorship very difficult. As a result, third parties cannot change the contract without permission. Ethereum aims to make everyday life more efficient and cost-effective through smart contracts, eliminating unnecessary third parties. Smart contracts provide more security and less cost than traditional contracts. Some people predict that smart contracts will be widely used in the financial world and other industries.