Why is Ethereum: The Smart Contract and dApp Building Platform

 Ethereum is an open-source blockchain platform that comprises of three layers. Ethereum Foundation is the platform’s governing body responsible for its development.

The first layer is the public ledger. 

Second is the ‘smart contracts layer’ where developers use Solidity to write code for dApps. This layer also executes the designed dApps.

And the last layer is the ‘dApps layer’ where decentralized applications interact with users

Anyone from any part of the world can write and develop applications on Ethereum involving some digital value – lending, borrowing, investing, trading, etc.

These applications self-execute whenever a specific set of conditions are fulfilled. Ethereum’s technical capability to support the growth of such programs has led to the rise of the decentralized finance (DeFi) space.

All DeFi protocols are based on Ethereum and have the following features:

Interoperable

Programmable – smart contracts drive decision making in the DeFi ecosystem, not humans

Composable – the entire system is like a box of Lego blocks — there is absolutely no limit to what can be built

DeFi is a swiftly growing space with solid potential to move the needle in finance and commerce. The total value of funds locked in has already surpassed the $6 billion mark.