Ethereum is a decentralized blockchain platform that allows developers to build and deploy smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and others, Ethereum introduced programmability to blockchain technology, enabling it to do much more than just process cryptocurrency transactions. Key Features of Ethereum: Smart Contracts: Self-executing programs with predefined rules, [...]

By Published On: December 5, 2024

Ethereum is a decentralized blockchain platform that allows developers to build and deploy smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and others, Ethereum introduced programmability to blockchain technology, enabling it to do much more than just process cryptocurrency transactions.

Key Features of Ethereum:

  1. Smart Contracts: Self-executing programs with predefined rules, enabling automation of transactions and processes.
  2. Decentralisation: Operates on a distributed network of nodes, ensuring security and resistance to censorship.
  3. Native Cryptocurrency: Ethereum’s native token is Ether (ETH), used to pay for transaction fees (called gas fees) and as a store of value.
  4. Turing-Complete: Ethereum’s programming language allows developers to create complex applications and functionality.

How Ethereum Works:

  • Blockchain: A public ledger that records all transactions and smart contract interactions.
  • Consensus Mechanism: Ethereum transitioned to a Proof of Stake (PoS) system in 2022, which is more energy-efficient than the original Proof of Work (PoW).
  • Gas Fees: Transactions and smart contract executions require gas, a fee paid in ETH to compensate validators for their work.

Uses of Ethereum:

  1. dApps: Applications that run on Ethereum’s decentralised network (e.g., DeFi platforms, gaming apps, NFT marketplaces).
    • Examples: Uniswap (DeFi), OpenSea (NFTs).
  2. DeFi (Decentralised Finance): Lending, borrowing, and trading platforms built on Ethereum.
  3. NFTs (Non-Fungible Tokens): Unique digital assets like art, collectibles, and virtual land created on Ethereum.
  4. Token Creation: Ethereum supports ERC-20 tokens for fungible tokens and ERC-721 tokens for NFTs.