What is Ethereum? Ethereum is a decentralized platform that runs on blockchain technology. Think of it as a giant, global computer that anyone can use to build and run applications without needing a central authority to manage them.
What is Ether (ETH)? Ether (ETH) is the cryptocurrency used on the Ethereum platform. It’s like the fuel that powers the Ethereum network. People use ETH to pay for transactions, run applications, and even buy goods and services if accepted.
How does Ethereum work? Ethereum uses blockchain technology, which is a secure and transparent way to record transactions. Instead of having a central server, Ethereum’s blockchain is maintained by thousands of computers (called nodes) around the world. This makes it very secure and resistant to censorship.
Smart Contracts One of the coolest features of Ethereum is smart contracts. These are self-executing contracts with the terms of the agreement directly written into code. For example, a smart contract could automatically release payment to a freelancer once a job is completed, without needing a middleman.
Decentralized Applications (DApps) Ethereum allows developers to create decentralized applications (DApps). These are apps that run on the Ethereum network and are not controlled by any single entity. Examples include decentralized finance (DeFi) apps, games, and social media platforms.
Proof of Stake Ethereum uses a system called Proof of Stake to validate transactions. Instead of miners using lots of energy to solve complex puzzles (like in Bitcoin), validators are chosen to create new blocks and confirm transactions based on the amount of ETH they hold and are willing to “stake” as collateral.
History Ethereum was created by Vitalik Buterin and launched in 2015. It was designed to expand the capabilities of blockchain technology beyond just digital currency, enabling a wide range of decentralized applications