Ethereum

Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). It was proposed in 2013 by Vitalik Buterin and officially launched in 2015.

While Bitcoin was created primarily as a digital currency, Ethereum was designed to be a more flexible platform for building decentralized software. The core innovation of Ethereum is the Ethereum Virtual Machine (EVM), which runs smart contracts—self-executing programs that automatically carry out transactions or actions when specific conditions are met.

Ethereum uses its own cryptocurrency called Ether (ETH), which is used to pay for transactions, smart contract execution, and other services on the network. Users pay “gas fees” in ETH to use the network, especially when deploying or interacting with smart contracts.

In 2022, Ethereum transitioned from a Proof of Work to a Proof of Stake consensus mechanism through an upgrade known as “The Merge.” This significantly reduced its energy consumption and allowed users to participate in securing the network by staking ETH instead of mining.

Ethereum has become the foundation for much of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems. It continues to evolve through upgrades focused on scalability, security, and efficiency, such as sharding and Layer 2 solutions.

In summary, Ethereum is a programmable blockchain that goes beyond simple transactions by enabling complex applications and automation in a decentralized, trustless environment.