Information about #ETH
Ethereum (ETH) Overview — Educational Information
What is Ethereum (ETH)?
Ethereum is an open-source blockchain platform launched in 2015 by Vitalik Buterin and others. Its native cryptocurrency is called Ether (ETH). Unlike Bitcoin, which mainly functions as digital money, Ethereum is designed to support smart contracts and decentralized applications (dApps).
Key Features:
Smart Contracts: Self-executing agreements with the terms directly written into code.
dApps: Developers can build games, finance apps, marketplaces, etc., on the Ethereum blockchain.
Decentralized Finance (DeFi): Ethereum is the backbone for many DeFi protocols like lending, borrowing, and trading without intermediaries.
NFTs: Most non-fungible tokens (NFTs) are built on Ethereum.
How It Works:
Ethereum was originally proof-of-work (like Bitcoin) but switched to proof-of-stake (PoS) in 2022 via the Merge. Now, ETH holders can stake their coins to help validate transactions and secure the network.
Developers use a programming language called Solidity to write smart contracts.
Supply & Fees:
ETH does not have a fixed supply cap like BTC.
Transaction fees are called gas, and they can vary depending on network activity.
Risks and Considerations:
High gas fees during congestion
Smart contract vulnerabilities (bugs)
Regulatory uncertainty
Use Cases:
Powering dApps and DeFi
Trading and investing
Payments
Staking for rewards
