Ethereum is a decentralized, open-source blockchain system that features smart contract functionality. It was conceived in 2013 by programmer Vitalik Buterin @vitalik.eth and development began in early 2014 through a Swiss company, Ethereum Switzerland GmbH (EthSuisse).

The EVM is the runtime environment for smart contracts in Ethereum. It is Turing-complete, meaning it can execute any computational task, given enough resources. The EVM isolates and executes smart contract code, ensuring security and integrity.