#ETH

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What is Ethereum (ETH)?

Ethereum is a decentralized, open-source blockchain system that features smart contract functionality. It was proposed in late 2013 by Vitalik Buterin and development began in early 2014. Ethereum allows developers to build and deploy decentralized applications (dApps).

Native cryptocurrency: Ether (ETH)

Purpose: Beyond simple transactions—allows programmable agreements (smart contracts)

Consensus: Moved from Proof-of-Work (PoW) to Proof-of-Stake (PoS) with Ethereum 2.0 (The Merge)

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Ethereum Architecture (Graphic)

Here's a simple graphic that explains Ethereum's ecosystem:

Key Layers:

1. Blockchain – stores transaction records.

2. EVM (Ethereum Virtual Machine) – executes code across the network.

3. Smart Contracts – self-executing contracts with the terms written in code.

4. dApps – decentralized applications like DeFi platforms, NFTs, etc.

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Key Features of Ethereum

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Ethereum Timeline (Quick Reference)

2015: Ethereum launched

2017: ICO boom using Ethereum

2020: Rise of DeFi

2021: NFT explosion

2022: Ethereum Merge – switch to Proof of Stake

2023–2025: Layer 2 scaling (e.g., Optimism, Arbitrum), Dencun upgrade, staking adoption