$ETH

How Ethereum Blockchain Works

Ethereum is a decentralized blockchain that enables smart contracts and decentralized applications (dApps). Unlike Bitcoin, which is primarily used for peer-to-peer payments, Ethereum allows developers to create their own applications using smart contracts—self-executing contracts with the terms directly written into code. The Ethereum blockchain is powered by Ether (ETH), which is used to pay for transaction fees and computational services. Ethereum uses a proof-of-stake (PoS) consensus mechanism, which is more energy-efficient than the traditional proof-of-work (PoW). Validators on the network verify transactions and secure the blockchain, earning rewards in ETH for their participation.