The Ethereum blockchain is essentially a transaction-based state machine. We begin with a blank state, before any transactions have happened on the network, and move into some final state when transactions are executed. The state of Ethereum relies on past transactions. These transactions are grouped into blocks and each block is chained together with its parent.
Transactions are processing by own Turing complete virtual machine - known as the Ethereum Virtual Machine (EVM). The EVM has its own language: EVM bytecode. Typically programmer writes the program in a higher-level language such as Solidity. Then the program should be compiled down to EVM bytecode and commited to the Ethereum network as the new transaction. The EVM executes the transaction recursively, computing the system state and