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How To Set up Your Own Ethereum Development Environment [A Step by Step Guide] The Compound Protocol is a suite of smart contracts that enable software developers to interface with cryptocurrency money markets. In order to create a program for Ethereum and interact with Compound’s smart contracts, you need to have an access point to the network. In this guide, we’ll be installing Ganache CLI so we can run our Solidity and Web3.js code locally during development. We can start up a blank. blockchain, or a. fork of a public network's blockchain on your local machine.