What is Ethereum?

Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Created by Vitalik Buterin and launched in 2015, Ethereum introduced programmable blockchain technology.

The native cryptocurrency of the Ethereum network is called Ether (ETH), which is used to pay for transaction fees and computational services.

How Ethereum Works

Unlike Bitcoin, which primarily functions as digital money, Ethereum serves as a platform for decentralized computing:

  • Smart Contracts: Self-executing code that runs when conditions are met
  • Ethereum Virtual Machine (EVM): Executes smart contract code
  • Gas: Fees paid for computational operations
  • Proof of Stake: Consensus mechanism since “The Merge” (2022)

Key Features

  • Programmable: Developers can create any application
  • DeFi foundation: Powers most decentralized finance protocols
  • NFT standard: Home of ERC-721 NFT tokens
  • Large ecosystem: Thousands of dApps and tokens
  • Constantly evolving: Regular network upgrades

Ethereum Use Cases

  • Decentralized Finance (DeFi) applications
  • Non-Fungible Tokens (NFTs)
  • Decentralized Autonomous Organizations (DAOs)
  • Gaming and metaverse platforms
  • Enterprise blockchain solutions

Trading Ethereum

ETH is the second-most traded cryptocurrency, available on all major exchanges like Binance, Coinbase, and Kraken.