Ethereum (**ETH**) is the second largest cryptocurrency after Bitcoin by market capitalization, but it differs in that it is not just a digital currency, but a **decentralized platform** that supports smart contracts and decentralized applications (**DApps**).
#### **Key Features of Ethereum:**
1. **Smart Contracts** 🤖
- Allow for the execution of automated agreements without intermediaries.
- Used in decentralized finance (**DeFi**) and **NFTs**.
2. **Decentralized Applications (DApps)** 🌐
- More than **3,000 applications** built on the Ethereum network (such as **Uniswap, OpenSea**).
3. **Major Updates** ⚙️
- **Transition to Ethereum 2.0** from a **Proof-of-Work (PoW)** model to **Proof-of-Stake (PoS)** to reduce energy consumption by **99%**.
- Updates like **EIP-1559** have made the currency **more efficient** and less costly.
#### **Challenges:**
- **High transaction fees** (Gas Fees) during congestion.
- Competition from other networks like **Solana and Cardano**.
#### **Future of Ethereum:**
- With improvements in **Layer 2** solutions like **Polygon**, the network may become **faster and cheaper**.
- Its dominance continues in **DeFi, Metaverse, NFTs**.
**Conclusion:**
Ethereum is not just a currency, but a **comprehensive environment** for the decentralized internet, and if developments continue, it may remain **number 1 in smart applications**.
