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In 2015, Ethereum introduced new decentralized applications developed by Vitalik Buterin. Smart contracts play a significant role in Ethereum's success, being more functional compared to traditional contracts. Smart contracts are digital agreements with protocols for parties to fulfill promises. A tutorial on creating an Ethereum smart contract is provided by Simply Learn, emphasizing the importance of subscribing to their YouTube channel for updates. The video will guide viewers through the coding journey of developing and deploying an Ethereum smart contract.