Ethereum is a platform that permits anyone to develop unstoppable, decentralized applications. If you’ve never heard of Ethereum or aren’t sure what is the use of Ethereum, I strongly advise you to read “What is Ethereum?” before delving deeper and learning how it operates in this article.

This article provides an essential and non-technical overview of Ethereum’s logic and inner mechanics. Please be aware that the explanation provided below is a concise summary of what occurs, but it should be detailed enough to help you grasp how it functions.

We can visualize Ethereum as a stack of several layers constructed on each other.

The first and most foundational layer is a vast computer network that executes transactions and keeps a common database up to date over time (the Ethereum blockchain).

The second is the software layer, which enables developers to run programs known as “smart contracts” on the Ethereum blockchain using the “Solidity” programming language.

The third layer comprises applications that provide various services to Ethereum users (from governance to identity management). The platform’s distinguishing characteristic is that leveraging the Ethereum hardware and software layers makes these apps decentralized, lack a single point of failure, and are thus “unstoppable.” You cannot turn them off.

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Written By Shubhada Pande