Ethereum is the second largest cryptocurrency in the world by market capitalization after Bitcoin. It is symbolized by ETH and is used to operate the Ethereum network, which is a decentralized platform that supports smart contracts and decentralized applications (dApps).
Here is a simplified overview:
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1. What is Ethereum?
It is not just a currency, but a complete system built on blockchain technology.
It was launched in 2015 by Vitalik Buterin and others.
It enables developers to create applications that cannot be manipulated or disrupted.
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2. Uses of ETH:
Transaction Fees (Gas Fees): ETH is used to pay for the operational fees of smart contracts and transactions on the network.
Decentralized Finance (DeFi): ETH is used in many financial applications such as lending, decentralized trading, and more.
Non-Fungible Tokens (NFTs): Most NFT projects operate on the Ethereum network.
Staking: After the upgrade to Ethereum 2.0, ETH holders can earn rewards for participating in securing the network.
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3. Major Updates:
Ethereum 2.0 (The Merge): This occurred in 2022, transitioning the network from a Proof of Work system to a Proof of Stake system, significantly reducing energy consumption.
Recent upgrades: Focus on improving speed, security, and reducing network fees.
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4. The Future of Ethereum:
Ethereum is considered the foundation for most of the infrastructure of decentralized applications.