$ETH : The Powerhouse Behind the Decentralized Web

Ethereum (ETH) is more than just a cryptocurrency; it's a decentralized blockchain platform that has revolutionized the digital landscape. Often referred to as the "world's computer," Ethereum enables developers to build and deploy a vast array of applications and smart contracts, forming the backbone of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.

What is Ethereum and How Does it Work?

At its core, Ethereum is a peer-to-peer network that maintains a public, distributed ledger of all transactions. Unlike Bitcoin, which primarily functions as a digital currency, Ethereum's innovation lies in its ability to execute "smart contracts." These are self-executing agreements with the terms written directly into code, eliminating the need for intermediaries.

Ether ($ETH) is the native cryptocurrency of the Ethereum network. It serves several crucial functions:

Gas Fees: ETH is used to pay for "gas fees," which are the costs incurred for performing transactions or executing smart contracts on the network. These fees compensate validators (formerly miners) for the computational power and resources required to process and secure transactions.
Staking: With the transition to a Proof-of-Stake (PoS) consensus mechanism (known as "The Merge"), ETH holders can now "stake" their ETH to become validators, earning rewards for helping secure the network.
Collateral and Value Transfer: ETH can be used as collateral in DeFi protocols, traded on exchanges, and sent peer-to-peer as a form of value transfer.