Ethereum, or ‘the world computer’ as it is often called by the supporting community, is a deterministic but practically unbounded state machine, consisting of a global singleton state and a virtual machine that applies changes to that state. This seems to be a very complex sentence but it really well shows what the Ethereum network actually is. In the following sections we will start to dissect every part of the sentence stated above and try to explain what makes it so very different from Bitcoin, and why it is also the first proponent of a new type of blockchain, introducing concepts of its own, and more importantly: blockchain 2.0. The reason why this is important, is that Ethereum was developed to fix an existing problem, the problem that the Bitcoin network wasn’t immediately able to solve.