$ETH Ethereum is a decentralized, open-source blockchain platform launched in 2015 by Vitalik Buterin and others. It’s more than just a cryptocurrency; it’s a programmable blockchain enabling developers to build decentralized applications (dApps) and execute smart contracts. Here’s a breakdown of the basics:
1. What is Ethereum?
Blockchain: A distributed ledger that records transactions across a network of computers, ensuring transparency and security.
Native Cryptocurrency: Ether (ETH) is used to pay for transactions, computational services, and fees on the network.
Decentralized: No single entity controls Ethereum; it’s maintained by a global network of nodes (computers).
2. Key Features
Smart Contracts: Self-executing contracts with code that automatically enforces agreements (e.g., transferring funds when conditions are met).
Decentralized Applications (dApps): Apps built on Ethereum, ranging from finance (DeFi) to gaming and NFTs, that operate without intermediaries.
Programmable: Developers can write code to create custom applications using Ethereum’s flexible platform.
3. How It Works
Nodes: Computers running Ethereum software validate and store transactions.
Gas: Fees (paid in ETH) for executing transactions or smart contracts, incentivizing miners/validators.
Consensus Mechanism:
Originally Proof of Work (PoW), like Bitcoin, requiring miners to solve computational puzzles.
Since The Merge (September 2022), Ethereum uses Proof of Stake (PoS), where validators stake ETH to secure the network, making it more energy-efficient.
4. Use Cases
Decentralized Finance (DeFi): Platforms like Uniswap or Aave for lending, borrowing, or trading without banks.
Non-Fungible Tokens (NFTs): Unique digital assets (e.g., digital art) stored on Ethereum.
Gaming: Blockchain-based games like Axie Infinity.
Supply Chain: Tracking goods transparently ( IBM’s Food Trust).
5. Ethereum’s Token: Ether (ETH)
Purpose: Pays for transaction fees (gas) and powers the network.
Market: Second-largest cryptocurrency by market
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