Hey, hey, hey, what's going on everybody? My name is Ray and we are still cruising along through web three but today we're gonna go and shine the light on what is ethereum right? Um ethereum was created in 2013 by vitality Budarin uh to let anyone write smart contracts and decentralized applications and you'll hear them called, people will say dat D A PPS, those are decentralized applications. So how does ethereum work? Right, because that's like I said, it's, it's when, when you get into this space, you start seeing that this is where everybody's building, you hear things like and we talked about in previous videos, layer one, layer two. There are other block chains but most everyone builds on ethereum because this, this is the most substantial Blockchain, most traffic, most people are using the ethereum Blockchain, but there are others, right? There are others out there. As of June 2022, Ethereum is the second most popular Cryptocurrency.
Like Bitcoin, it's built on the Blockchain. It's built on its own Blockchain and its decentralized, immutable and open. Unlike Bitcoin, ethereum goal is to become the world's decentralized computer Okay called E VMS or ethereum virtual machine. To understand what that even means. Let's define some of the following ethereum definitions. Okay, we're gonna go through some of that stuff because again, when you're working and dealing with stuff over here. It is like a foreign language. So we're gonna go through some of those ether ether is ethereum. Digital token ether is a store of value like Bitcoin. But its main purpose is to reward nodes on the ethereum Blockchain for processing transactions. Gas is the amount of ether that's paid to a node to process the transaction.
Smart contracts are code that runs on the ethereum Blockchain. This code is decentralized, stored across all nodes in the network immutable, can't be changed once you're committed to the Blockchain and an open anyone can view the code and use it. They're also decentralized apps. We talked about that previously there depths, decentralized applications combine a back end smart contract with front end UI Okay, that's kind of some of the definitions that you'll see in this space. Um another thing ethereum has the largest Web three developer ecosystem thanks to its composite bility like legos anyone can build on an existing smart contract to create something new. This has led to the creation of thousands of gaps that power this Web three use cases right in this, on this block chain buying and selling N F T s on open C.
That's something that you're seeing, hearing about a lot now. N F T. S. Most of these N F. T projects they use uh you know, ethereum Blockchain, there's some use polygon like I said, there's a lot of others but this is where the majority of everything is buying and selling N. F. T. S on open C swapping tokens like eunice swap. That is a dex. That is a decentralized exchange. That is what you need swap is pretty large project but that is a layer two project built on top of the ethereum Blockchain. It is a decentralized exchange lending and borrowing tokens. A company called compound. If you look them up, that is what they do. That is what their project does on top of a layer. It's a layer two on top of ethereum earning income from playing games. Most popular one you've probably heard of if you're looking in and and doing some research in this space, ACSI infinity right, is a big huge game in this space that people are actually making a pretty good income playing a game due to ethereum popularity, it costs a lot in gas to process transactions.
We'll cover how to pay less gas using a theory. Right? L two Chainz we talked about that again in the previous video and other L one chains later in this learning path that we're going through. So another thing I want to go through is the history of ethereum 2013 vitality veteran published the ethereum White paper after failing to convince the Bitcoin community to support decentralized apps on Bitcoin vitality co funded Ethereum as a new Cryptocurrency 2014 2015 Ether officially went on sale. People could buy it with Bitcoin 2016. The dow raises 100 and 50 million to provide a new decentralized business model for organizing companies. Unfortunately, hackers were able to use an exploit to steal one third of the dow's funds.
This led to ethereum doing a hard fork to restore lost funds. Let's fast forward to 2020 ethereum ships, the beacon chain as, as part of its two point oh plan to migrate from proof of work to proof of stake. The foundation plans to merge the main ethereum chain to staking sometime in 2022. And you know, we're thinking, I think now it might be more close back to September because there have been some other things that are delaying this. So now that we covered Bitcoin and ethereum, let's take a look at the overall Cryptocurrency market and that's what we're gonna do in some of these next videos. Thanks for watching like share and subscribe, appreciate it. Have a good one. See you the next video.