Ethereum (ETH) is the second most popular cryptocurrency after Bitcoin, but it differs from it in terms of purpose and technology.
What is Ethereum?
A decentralized blockchain platform launched in 2015 by Vitalik Buterin.
It allows for the development of smart contracts and decentralized finance (DeFi) applications and NFTs.
Features of Ethereum:
Smart Contracts: Automatically executed when certain conditions are met without the intervention of a third party.
Decentralized Applications (DApps): Games, financial platforms, and even social networks can be built.
Ethereum 2.0 (the transition to Proof of Stake): The network has transitioned from a mining system (PoW) to a proof of stake (PoS) system to reduce energy consumption and speed up transactions.
Uses of ETH:
Paying transaction fees (Gas fees) on the Ethereum network.
Trading and investing.