Introduction to how Ethereum smart contracts turned the blockchain into a platform for automated deals and decentralized applications running without central control.
Ethereum's key innovation lies in the concept of smart contracts. While previous blockchains allowed people to send and receive digital currency, Ethereum enabled code to perform transactions automatically under certain conditions. This turned the blockchain into a living network of deals and interactions that no central player can change.
Smart contracts are self-executing applications stored on the Ethereum blockchain. They act as pre-defined instruction sets that run exactly as they are written when triggered. Because these contracts are decentralized and immutable, they remove the need for trusted intermediaries to handle transactions, hold assets or enforce rules. Once launched, it is the code that controls the process, making it transparent and resistant to manipulation.
This shift paved the way for decentralized applications, or dApps -- software that operates without centralized servers or corporate control. Anyone can build or use a DApp, and the rules of the game are open and verifiable on the blockchain. The flexibility of this system has enabled Ethereum to support applications in finance, gaming, identity, data management and a variety of other sectors.
By making the blockchain programmable, Ethereum has not only taken the technology further — it has introduced a new model for digital coordination.