The Ethereum blockchain is a decentralized, open-source platform that goes far beyond being just a cryptocurrency (like Bitcoin). It is like a "global computer" where it is possible to create and run a vast range of decentralized applications (dApps) and smart contracts.
Here is a brief explanation:
* What is it? Ethereum is the name of the blockchain network. Ether (ETH) is the native cryptocurrency of this network, used to pay transaction fees and as "fuel" for operations on the platform.
* Smart Contracts: The great innovation of Ethereum is the ability to create and execute "smart contracts". Think of them as self-executing agreements, programmed to run automatically when certain conditions are met, without the need for intermediaries. This has opened the door to a universe of new possibilities.
* Decentralized Applications (dApps): Thanks to smart contracts, developers can build dApps on the Ethereum blockchain. This includes everything from games and social networks to decentralized financial platforms (DeFi) and non-fungible tokens (NFTs).
* Decentralization: Like other blockchains, Ethereum is decentralized. This means there is no central authority (like a bank or government) controlling it. Information is stored and validated by a network of computers (nodes) spread across the globe, making it resistant to censorship and failures.
* Consensus Mechanism (Current): Ethereum underwent a major update known as "The Merge" and now uses the "Proof of Stake" (PoS) consensus mechanism. Previously, it used "Proof of Work" (PoW), similar to Bitcoin. PoS is more energy-efficient and aims to improve the scalability and security of the network.
* Difference from Bitcoin: While Bitcoin is primarily focused on being a digital currency and store of value, Ethereum is a more versatile platform for creating a decentralized application ecosystem.
In summary, the Ethereum blockchain is a powerful and flexible infrastructure that has driven the development of a new era of the internet, "web3", focusing on decentralization, security, and autonomy for users.