A database with a cost structure looking for a problem.
Blockchain is the public, distributed ledger Nakamoto built for bitcoin in 2008–2009. It uses cryptographic hashing, proof-of-work, and difficulty adjustment to prevent double-spending without central control. It works—but at high energy cost, low throughput, and contested governance.
Ethereum is a decentralised mining network and software development platform enabling new cryptocurrencies and programs sharing a single blockchain. It solves the problem of building decentralised applications without forking Bitcoin or relying on centralised servers. It runs a Turing-complete virtual machine—the Ethereum Virtual Machine—specified by Gavin Wood in the Yellow Paper. It executes smart contracts as deterministic code on a decentralised network of nodes. Consensus was originally proof-of-work; it shifted to proof-of-stake on 15 September 2022. The EVM’s instruction set is Turing-complete. Smart contracts execute deterministically across thousands of nodes. The 2022 shift to proof-of-stake cut energy use by over 99%. It supports live, interoperable token standards and composability across deployed contracts. It does not deliver on its original promise of attaching real-world assets like stocks or property to the blockchain at scale. The EVM’s Turing-completeness enables bugs, re-entrancy, and gas-exhaustion failures that have caused repeated, costly exploits. Its consensus upgrade did not resolve scalability or finality trade-offs. It changed software development by making stateful, shared computation a first-class primitive on open networks. It enabled permissionless issuance of tokens and composable financial primitives—but entrenched a model where economic incentives dominate protocol governance. Yes—if you need programmable, trust-minimised execution across untrusted parties and can absorb the cost, complexity, and risk of on-chain logic. No—if you require predictable latency, low cost, or formal verification guarantees.