$USDC $USDC How does Ethereum work?

* Transaction and smart contract recording: When a user makes a transaction or executes a smart contract on the Ethereum network, this data is recorded in a block.

* Consensus and validation: The majority of participants in the distributed network (miners or validators currently after the upgrade to Proof of Stake) must agree on the validity of the transaction.

* Adding the block to the chain: Once verified, the block is closed and linked to the previous block in the chain, forming a permanent and immutable record.

* Gas fees: To cover the cost of processing transactions and executing smart contracts on the network, users pay fees called "gas" using the Ether (ETH) currency. This incentivizes validators to secure the network and process transactions.

Uses of Ethereum:

The uses of Ethereum go beyond being just a digital currency:

* Decentralized finance (DeFi): Creation of decentralized financial applications such as lending, credit, and exchange platforms without the need for banks or traditional financial institutions.

* Non-fungible tokens (NFTs): Allowing ownership of unique digital assets such as digital art, collectibles, and video games.$ETH