Ethereum (ETH) is the second-largest cryptocurrency by market capitalization and the leading smart contract platform in the blockchain ecosystem. Launched in 2015 by Vitalik Buterin and other developers, Ethereum goes beyond being just digital money. It enables decentralized applications (dApps), decentralized finance (DeFi), non-fungible tokens (NFTs), and innovative blockchain-based solutions through its programmable network. Its native token, ETH, is used for paying transaction fees (gas) and as collateral in various DeFi protocols. With the transition to **Ethereum 2.0** and the Proof-of-Stake (PoS) consensus mechanism, the network has significantly reduced energy consumption, improved scalability, and enhanced security. Ethereum’s thriving developer community and continuous upgrades, like sharding and layer-2 solutions, aim to solve high transaction fees and network congestion. Considered the backbone of Web3 innovation, Ethereum remains a dominant force in shaping the future of decentralized economies, digital ownership, and global financial systems.
