$ETH Ethereum is a decentralized global software platform powered by blockchain technology. It's often referred to as "the world's programmable blockchain" because, unlike Bitcoin which is primarily a digital currency, Ethereum allows developers to build and deploy a wide range of applications and smart contracts.

Here's a breakdown of key aspects of Ethereum (ETH crypto):

1. What is ETH?

* ETH is the native cryptocurrency of the Ethereum blockchain, also known as Ether.

* It's used to pay for transaction fees and computational services on the Ethereum network. These fees are often called "gas fees."

* ETH is the second-largest cryptocurrency by market capitalization, after Bitcoin.

2. How Does Ethereum Work?

* Blockchain Technology: Ethereum operates on a blockchain, a distributed ledger that stores information in "blocks." Each block contains encoded data from the previous block, creating a secure and tamper-proof chain of information.

* Smart Contracts: This is one of Ethereum's most significant innovations. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference.

* Decentralized Applications (DApps): Ethereum allows developers to build DApps, which are applications that run on a decentralized network rather than being controlled by a central authority.

* Ethereum Virtual Machine (EVM): The EVM is a powerful, decentralized computer that runs the code for smart contracts and DApps across the Ethereum network.

* Proof-of-Stake (PoS): Ethereum transitioned from a Proof-of-Work (PoW) consensus mechanism (like Bitcoin) to Proof-of-Stake (PoS) in 2022. In PoS, "validators" stake (deposit) their ETH to help secure the network and validate transactions. This makes Ethereum significantly more energy-efficient.