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description: A super brief summary of the chapter
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# TL;DR 👀

<mark style="color:purple;">**Bitcoin vs Ethereum**</mark>

<mark style="color:purple;">Both let you use digital money without payment providers or banks, but Ethereum is programmable, so you can also build and deploy decentralized applications on its network</mark>



<mark style="color:purple;">**What can Ethereum do?**</mark>

<mark style="color:purple;">Ethereum is a censorship-resistant peer-to-peer network that can be used for banking, commerce, private internet and more</mark>&#x20;



<mark style="color:purple;">**What is Ether (ETH)?**</mark>

<mark style="color:purple;">Ether (ETH) is the gas token of the Ethereum blockchain that's used to finalize transactions on the network</mark>

<mark style="color:purple;">Ether is not controlled by any one entity –– It exists solely through the decentralized participation and cooperation of the community.</mark>



<mark style="color:purple;">**What's Unique About ETH?**</mark>

<mark style="color:purple;">ETH fuels and secures Ethereum and underpins the Ethereum financial system</mark>



<mark style="color:purple;">**What are Smart Contracts?**</mark>

<mark style="color:purple;">Smart contracts are computer programs stored on the blockchain that allows us to convert traditional contracts into digital parallels</mark>

<mark style="color:purple;">Smart contracts remove the need for intermediaries in facilitating agreements between two unrelated parties</mark>

<mark style="color:purple;">Smart contracts can perform computations, create currency, store data, mint NFTs, send communications and even generate graphics</mark>



<mark style="color:purple;">**Energy Consumption?**</mark>

<mark style="color:purple;">Ethereum's proof-of-work is undergoing a merge to a proof-of-stake blockchain, which will reduce the energy required to secure Ethereum by about 99.95%, creating a more secure network for a much smaller carbon cost</mark>



<mark style="color:purple;">**Ethereum Virtual Machine (EVM)**</mark>

<mark style="color:purple;">Ethereum Virtual Machine (EVM) is a computation engine which acts like a decentralized computer that has millions of executable projects</mark>



<mark style="color:purple;">**Pros & Cons of Smart Contracts**</mark>

<mark style="color:purple;">Smart contracts have advantages in accuracy, transparency, clear communication, speed, security, efficiency, paper free, storage and backup, savings and trust</mark>

<mark style="color:purple;">Smart contracts have disadvantages in</mark> <mark style="color:purple;"></mark>_<mark style="color:purple;">an ability to change, remedies for security breaches, negotiation limitations and outside data gathering</mark>_



<mark style="color:purple;">**Decentralized Applications (dApps)**</mark>

<mark style="color:purple;">A dApp has its backend code running on a decentralized peer-to-peer network</mark>

<mark style="color:purple;">DApps offer benefits in having private and censorship-resistant programs, but struggle with needing maintenance, mitigating traffic overload and avoiding the risk of hacks</mark>

<img src="https://181307839-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQWxBoBbfE8PwrCzRwvFS%2Fuploads%2F7ZlKKfJqfb3OcozWfVmy%2FSEEDBLACK%20copy%203.png?alt=media&#x26;token=ac490488-e6c3-403b-85ed-b25e9da53993" alt="" data-size="line">



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<summary><mark style="color:yellow;">References</mark></summary>

[Quicknode](https://www.google.com/url?sa=t\&rct=j\&q=\&esrc=s\&source=web\&cd=\&ved=2ahUKEwizrbXf9sr5AhWa8DgGHeuxD7cQFnoECAcQAw\&url=https%3A%2F%2Fwww.quicknode.com%2Fguides%2Fsolidity%2Fan-overview-of-how-smart-contracts-work-on-ethereum\&usg=AOvVaw0yexpcSy62xynA_R7oWrBB)

[Coinmarketcap](https://www.google.com/url?sa=t\&rct=j\&q=\&esrc=s\&source=web\&cd=\&cad=rja\&uact=8\&ved=2ahUKEwiX59eXus35AhUJFLcAHRtBCT4QFnoECCkQAQ\&url=https%3A%2F%2Fcoinmarketcap.com%2Falexandria%2Fglossary%2Fethereum-virtual-machine-evm\&usg=AOvVaw0AB3PLn5sjcJ7pJhULSdi9)

[https://ethereum.org/en/developers/docs/dapps/](https://ethereum.org/en/developers/docs/dapps/)

[https://ethereum.org/en/developers/docs/standards/tokens/](https://ethereum.org/en/developers/docs/standards/tokens/)



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