What is Ethereum?

Ethereum launched in 2015 and is the second biggest blockchain after Bitcoin. However, it wasn't created to be digital money.

Ethereum was built to be a different type of global, decentralized computing network, using the security and openness of blockchains to run many different types of applications. 

Everything from financial tools to games to artwork is built on the Ethereum blockchain. It has become a popular way to store assets and organize communities. Like Bitcoin, it can be used to send and receive assets without a bank or institution playing middleman.

What are Smart Contracts?

Just like paper contracts, smart contracts are used to help define the “rules” of an agreement. They are not legally binding contracts, but rather, they help to automate the process of transactions, guided by the rules of the contract.

Smart contracts execute automatically when terms are met, and no intermediary needs to sign off or know who is operating on the other side of the deal.

The Ethereum network innately supports smart contracts to offer secure transactions for a wide variety of assets. 

Smart contracts are used to mint NFTs and to send a percentage back to the original artist every time their art is sold on the secondary market — like royalties for the Web3 age.