Course Progress
Part of 5 Chapters
Ethereum and Smart Contracts: The World Computer
Chapter 2. Ethereum and Smart Contracts: The World Computer
If Bitcoin is “Digital Gold,” then ==Ethereum is the “World Computer.”== Launched in 2015 by Vitalik Buterin and a team of developers, Ethereum added a layer of programmability to blockchain technology.
It moved us from “I send you 1 coin” to “I send you 1 coin if a certain condition is met.”
1. Evolution: Bitcoin vs. Ethereum
To understand Ethereum, we must see how it differs from its predecessor.
Blockchain Comparison
| Feature | Bitcoin | Ethereum |
|---|---|---|
| **Primary Use Case** | Store of Value / Currency | Programmable Platform (dApps) |
| **Logic** | Fixed Script (Limited) | Turing Complete (Infinite possibilities) |
| **Block Time** | ~10 minutes | ~12 seconds |
| **Core Asset** | Bitcoin (BTC) | Ether (ETH) |
2. The Innovation: Smart Contracts
A Smart Contract is simply a program that runs on the blockchain. It is ==“Self-executing code”== that automatically enforces an agreement.
Developers write logic in a language like Solidity
The code is uploaded to the Ethereum blockchain
An event (e.g., a payment or date) activates the contract
EVM executes the logic without any human intermediaries
The state is updated (e.g., funds are moved)
3. The Engine Room: EVM and Gas
How does a global network of computers run code safely?
- Ethereum Virtual Machine (EVM): A virtual sandbox that ensures code runs exactly the same way on every node in the network.
- Gas: To prevent spam and infinite loops, every operation on Ethereum costs “Gas.” Think of it as ==“Fuel for the World Computer.”==
- ETH: The native currency used to pay for Gas.
The Immutable Risk: Because smart contracts are immutable, if there is a bug in the code, it cannot be easily fixed once deployed. This is why security audits are critical in the Web3 space.
4. Conclusion: Beyond Payments
Ethereum opened the door to Decentralized Applications (dApps). By allowing developers to build logic on top of a secure, shared ledger, it paved the way for everything from decentralized finance (DeFi) to digital art (NFTs).
📚 Prof. Sean’s Selected Library
- [The Infinite Machine] - Camila Russo: A gripping history of how Ethereum was created.
- [Mastering Ethereum] - Andreas Antonopoulos & Gavin Wood: The essential technical guide for understanding the EVM and Solidity.
- [Ethereum Whitepaper] - Vitalik Buterin: The original vision for a decentralized application platform.
Next time, we will explore ‘Tokenomics’—learning the economic principles that turn a piece of code into a valuable asset.