$ETH Ethereum (ETH) is a leading blockchain platform and the second-largest cryptocurrency by market capitalization. It's more than just a digital currency; it's a decentralized, open-source platform that enables the creation and execution of smart contracts and decentralized applications (dApps).
Here's a breakdown of key aspects of Ethereum:
**Functionality:**
* **Smart Contracts:** These self-executing contracts with the terms directly written into code automate and enforce agreements without intermediaries. This has applications in various fields, including finance, supply chain, and voting.
* **dApps:** Decentralized applications built on Ethereum leverage blockchain's security and transparency. They range from decentralized finance (DeFi) platforms to games and social networks.
* **Tokenization:** Ethereum facilitates the creation of various tokens, including cryptocurrencies (like its native ETH) and NFTs (non-fungible tokens) representing unique digital assets.
**Technology:**
* **Blockchain:** Ethereum utilizes a proof-of-stake blockchain, where validators secure the network by staking ETH. This mechanism is more energy-efficient than the proof-of-work model used by Bitcoin.
* **Ethereum Virtual Machine (EVM):** This runtime environment executes smart contracts, ensuring compatibility across the network.
**Ecosystem:**
* **DeFi:** Ethereum is the backbone of the DeFi movement, enabling lending, borrowing, and trading of crypto assets without traditional financial institutions.
* **NFTs:** The Ethereum blockchain is the primary platform for creating and trading NFTs, revolutionizing digital ownership and collectibles.
* **Developer Community:** Ethereum boasts a large and active developer community, constantly innovating and expanding the platform's capabilities.