$ETH

Ethereum is a decentralized blockchain platform that enables smart contracts and decentralized applications (DApps) to run without the need for intermediaries. Here’s a breakdown of how it works:

1. Core Concepts

Blockchain: A decentralized, distributed ledger that records transactions across many computers.

Smart Contracts: Self-executing contracts with predefined rules, running on Ethereum’s blockchain.

Ethereum Virtual Machine (EVM): A global decentralized computer that executes smart contracts.

Ether (ETH): Ethereum’s native cryptocurrency, used to pay for transactions and computational power.

2. How Ethereum Works

Transactions: Users send ETH or interact with smart contracts by submitting transactions.

Consensus Mechanism: Ethereum transitioned to Proof of Stake (PoS) with Ethereum 2.0, where validators stake ETH to secure the network instead of mining (Proof of Work).

Gas Fees: Transactions require a fee (gas), which depends on network activity and computational complexity.