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What is Ethereum?
Ethereum — A programmable blockchain platform that executes smart contracts and powers decentralized applications, using ETH as its native currency.
How It Works
01 Ethereum runs on the Ethereum Virtual Machine (EVM), a Turing-complete runtime that executes smart contract code.
02 Developers write contracts in Solidity, deploy them on-chain, and users interact with them by sending transactions.
03 Every operation consumes "gas" (paid in ETH), preventing infinite loops and spam.
04 Since 2022, Ethereum uses Proof of Stake — validators stake ETH to secure the network instead of mining.
Why It Matters
▸ Ethereum is the foundation of DeFi (decentralized finance) — lending, borrowing, and trading without banks.
▸ It pioneered NFTs (non-fungible tokens), enabling verifiable digital ownership.
▸ Thousands of dApps and Layer 2 networks depend on Ethereum's security.
▸ It transitioned from Proof of Work to Proof of Stake, reducing energy use by 99.95%.
Common Questions
What is the difference between Bitcoin and Ethereum?
Bitcoin is primarily digital money with a fixed supply. Ethereum is a programmable platform that runs smart contracts and hosts applications.
What is ETH used for?
ETH pays for transaction fees (gas), secures the network via staking, and serves as a store of value and medium of exchange in the Ethereum ecosystem.
What is a smart contract?
A smart contract is self-executing code on the blockchain. It automatically enforces agreement terms without intermediaries.