What is Ethereum?
Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and a team of co-founders, Ethereum has become one of the most prominent cryptocurrencies after Bitcoin.
Key Features
- Smart Contracts: Automated contracts that execute when predefined conditions are met, eliminating the need for intermediaries.
- Decentralized Applications (dApps): Applications built on the Ethereum blockchain that run on a peer-to-peer network, ensuring transparency and censorship resistance.
- Ether (ETH): The native cryptocurrency of Ethereum, used to pay for transactions, computational services, and as a form of digital currency.
Ethereum 2.0
Ethereum is currently undergoing an upgrade known as Ethereum 2.0 or Eth2, which aims to improve scalability, security, and sustainability. This includes transitioning from a proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS).
Use Cases
Ethereum is used in various applications, including finance (DeFi), supply chain management, gaming, and digital art (NFTs). Its versatile features enable innovative solutions across numerous industries.
In summary, Ethereum is not just a cryptocurrency; it is a comprehensive platform that is reshaping the future of finance and technology.