Ethereum is like a giant, decentralized computer that no one controls, but everyone can use. It was created to go beyond what Bitcoin could do by allowing people to build apps and programs that run on a secure, global network—without needing banks, tech giants, or middlemen to manage them.

Imagine you want to make an agreement with someone—like renting an apartment—but instead of relying on a third party to enforce the deal, you use smart contracts. These are self-executing agreements stored on the Ethereum blockchain that automatically do what they’re supposed to, without anyone being able to cheat or change the terms.

Ethereum has also evolved over time. It originally worked like Bitcoin, using Proof-of-Work (PoW) mining, where computers solve puzzles to verify transactions. But in 2022, Ethereum switched to Proof-of-Stake (PoS), which is much more energy-efficient and allows people to "stake" their ETH to help secure the network and earn rewards.

Beyond just cryptocurrency, Ethereum is the foundation for NFTs, DeFi (decentralized finance), and Web3 apps, making it one of the most important innovations in blockchain technology today.