Ethereum is a blockchain-based platform on which programming code can be run and computed. It utilizes a Turing-complete virtual machine, known as the Ethereum Virtual Machine, to compute scripts through a decentralized network of nodes. The software is open-source and the blockchain is public. The platform has many uses, with smart contracts being the most popular and common. Smart contracts are scripts that are stored on the Ethereum blockchain whose primary function is to exchange any unit of value. The smart contract can perform other tasks such as creating new tokens and eliminating fraud in real-life contracts. Ether is the primary token of Ethereum and serves as a unit of value to pay for transaction fees and other services performed on the platform.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.