Ethereum provides a computational engine for any idea that can be reduced to mathematics, leaving developers free to be imaginative in building dApps. Ethereum doesn’t enforce rules on those that use it, like Google’s Playstore or Apple’s App Store, and includes its currency, Ether, used as a medium of exchange within a dApp and a way to pay for renting its computing power.
That computation is facilitated by Smart Contracts, agreements defined in a bespoke language called Solidity. Ethereum’s brain, known as the EVM – Ethereum Virtual Machine – executes Smart Contracts, with the latest state recorded in its blockchain.
For those developers to have the freedom to build value into their ideas, Ethereum allows them to create their own tokens, rather than insisting that ETH, its native token, is used.
The flexible use of tokens was a masterstroke because it allowed dApps the freedom to build their mini-economies with unique tokens for exchanging and creating value.
But even better, Ethereum enables dApps to seamlessly integrate – an idea called composability – because those tokens adhere to a common set of standards.
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