Ethereum — Token Economy in Digital World

Part 1: Understanding the Ethereum

Summary

Ethereum is a decentralized blockchain platform that establishes a peer-peer network that securely executes and verifies application code, called smart contracts.

1. Peer -To- Peer Network(P2P)

This is a decentralized system where each participant has equal status and ability to share resources, including data, processing power, and storage, without relying on a central authority.

For example File sharing, distributed computing, and communication between users.

Picture1: Peer-to-Peer system architecture

2. Smart Contract Application

It is a self-executing agreement with the terms of the contract directly written into lines of code, which means a computer program that runs on the Ethereum blockchain, allowing for decentralized and trustless transactions.

Picture2: The smart contract between buyer and seller

• Pros of Smart contract

1. No third-party interference (decentralization)
2. Automation
3. Trust and transparency
4. Time-Saving

Conclusion

I am going to post comprehensive content related to the Ethereum blockchain network and token economy through several steps. Hopefully, this helps everyone who wants to know knowledge of Ethereum in the digital world. Thanks for reading my article today!!