Ethereum (ETH) is a blockchain platform that enables developers to build decentralized applications (DApps) and execute smart contracts. Created by Vitalik Buterin in 2015, Ethereum expands beyond Bitcoin’s functionalities.
How Ethereum Works
Ethereum uses a decentralized blockchain, but unlike Bitcoin, it supports smart contracts—self-executing contracts that run automatically when conditions are met. Ethereum is transitioning from Proof of Work (PoW) to Proof of Stake (PoS) for improved scalability and energy efficiency.
Key Features of Ethereum
- Smart Contracts – Automate agreements without intermediaries.
- DApps – Supports decentralized applications on its blockchain.
- Ethereum Virtual Machine (EVM) – Enables developers to execute smart contracts efficiently.
- Ethereum 2.0 Upgrade – Enhances security, scalability, and transaction speed.
Why is Ethereum Important?
Ethereum powers thousands of projects in DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and Web3 innovations. Its ecosystem fosters a decentralized internet with limitless possibilities.
