Ethereum is a decentralized, open-source blockchain system that enables the creation of smart contracts and decentralized applications (dApps). It was proposed in 2013 by Vitalik Buterin and launched in 2015. Unlike Bitcoin, which is primarily a digital currency, Ethereum is designed as a platform for building decentralized applications.
Key Features of Ethereum:
1. Smart Contracts – Self-executing contracts with the terms directly written into code.
2. Decentralized Applications (dApps) – Applications that run on the blockchain without central control.
3. Ethereum Virtual Machine (EVM) – A runtime environment for executing smart contracts.
4. Ether (ETH) – The native cryptocurrency of Ethereum, used for transactions and computational fees (gas fees).
5. Consensus Mechanism – Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS) with the Ethereum 2.0 upgrade to improve scalability and energy efficiency.
6. Decentralized Finance (DeFi) – Ethereum supports a range of DeFi applications, enabling financial services without intermediaries.
7. Non-Fungible Tokens (NFTs) – Unique digital assets, such as art, collectibles, and virtual real estate, are primarily built on Ethereum.
Ethereum 2.0 and Upgrades
Ethereum underwent a major upgrade called "The Merge" in September 2022, shifting from PoW to PoS. This reduced energy consumption by over 99% and laid the foundation for future scalability solutions like sharding.
Use Cases of Ethereum
DeFi applications (lending, borrowing, yield farming)
Gaming and Metaverse applications
Supply chain tracking
Tokenization of real-world assets
Voting systems and governance models
Ethereum remains the second-largest cryptocurrency by market capitalization and continues to be a driving force in blockchain innovation. Would you like more details on a specific aspect?