Ethereum (ETH)
Is an open-source, decentralized platform based on blockchain technology, launched in 2015 by Vitalik Buterin and other developers. Eth focuses on enabling the creation of smart contracts and decentralized applications (dApps), making it more than just a digital currency.
Key Features:
- Decentralization: It is not controlled by any entity, and is managed by a global network of nodes.
- Smart contracts: Automated protocols that execute the terms of agreements without an intermediary.
- Continuous development: It is moving to Eth 2.0 (Proof of Stake) to improve efficiency and reduce energy consumption.
- Base currency (Eth): It is used as a means of payment within the network and as fuel for applications.
How it works:
- Smart contracts: Execute pre-programmed commands when conditions are met.
- Gas: Fees paid in metal (ETH) to perform operations on the network.
- Consensus: It has moved from Proof of Work (PoW) to Proof of Stake (PoS) to reduce environmental impact.
Challenges:
- Complexity of smart contracts can lead to bugs and exploits.
- High gas fees during network congestion.
- Competition from other faster and cheaper blockchains.
Common uses:
- Decentralized finance (DeFi).
- Non-fungible tokens (NFTs).
- Supply chain applications and digital identity management.
$ETH is a pioneer in the field of smart contracts, but it faces technical and legal challenges, especially with the development of competitors such as Solana and Cardano.
