Ethereum is a blockchain, as well as a cryptocurrency, used to facilitate digital payments. It is a blockchain-based decentralized, open-source software platform application development. Ethereum is the most popular digital currency in the world after bitcoin. Currently, one Ether costs $237.19. A Russian-Canadian programmer, Vitalik Buterin, created Ethereum blockchain.
Bitcoin is only a peer to peer network-based electronic cash system. So, users use bitcoin mainly for digital transactions only. However, if you want to do more than just digital payments, Ethereum comes into play. With the help of Ethereum, you can convert your centralized application into a decentralized application. Ethereum lets a user create/deploy there smart contract solutions and distributed apps (DApps). To deploy code on Ethereum, you need to use EVM, which comes into use to compile/execute a smart contract code. EVM can facilitate compilation/execution of languages like Solidity by directly converting it into opcode first.
To use Ethereum and develop your DApp, you can sync with the testnet and mainnet provided by Ethereum. Usually, syncing an Ethereum node takes a lot of time. Ethereum provides several testnet options like Ropsten, Kovan, and Rinkeby. You can also create a separate Ethereum node on your local system that provides more control over the node. Ethereum provides libraries that let a user configure a private node on their local system, and it works the same as the main Ethereum node.
By following the given steps you can create your own Ethereum node at your local system.
Step 1: Install the required libraries for Ethereum
Step 2: Create a separate directory, configure files, and new accounts for the private node
Step 3: Create a shell script to start the node
Now, your Private Ethereum node is running and you can it status/logs under terminal.
Step 4: Attach the node to the geth console
The above command can be used to set up your own Ethereum node. Node created is similar to Ethereum mainnet, and you can mine ether, deploy smart contract, and create new accounts.