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Ethereum, introduced in 2015 by Vitalik Buterin, has led to the development of new decentralized applications. Smart contracts play a significant role in Ethereum's success as they are more functional than traditional paper-based contracts. Smart contracts are digital agreements with protocols for parties to fulfill promises. In this video tutorial, Simply Learn demonstrates how to create an Ethereum smart contract, emphasizing the importance of subscribing to their YouTube channel for updates. The tutorial focuses on the coding journey and stresses the importance of understanding Ethereum smart contracts before diving into development and deployment.