Ethereum logo glowing in cyberpunk neon

Ethereum is a decentralized platform that revolutionized the world of cryptocurrencies by introducing smart contracts and decentralized applications.

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Ethereum, launched in 2015 by Vitalik Buterin, is more than a cryptocurrency: it is a programmable blockchain that enables the execution of smart contracts. These self-executing code snippets power decentralized finance (DeFi) applications and non-fungible tokens (NFTs), transforming industries like art, gaming, and finance.

Unlike Bitcoin, which focuses on value transfer, Ethereum prioritizes computational flexibility. Its native currency, Ether (ETH), is used to pay transaction fees (gas) and reward miners (or validators after the shift to proof-of-stake). In 2022, Ethereum completed The Merge upgrade, slashing its energy consumption by 99.95%.

The Ethereum ecosystem hosts thousands of projects, including decentralized exchanges like Uniswap and lending protocols like Aave. Pivotal events such as the 2016 The DAO hack led to the split between Ethereum and Ethereum Classic. Today, Ethereum is the second-largest cryptocurrency by market capitalization and the foundation for innovations like scalability layers (rollups) and account abstraction.

Frequently Asked Questions

What is Ethereum and how does it work?

Ethereum is a decentralized blockchain that runs smart contracts. It uses the Ethereum Virtual Machine (EVM) to process transactions and applications, ensuring immutability and security without intermediaries.

What is the difference between Ethereum and Bitcoin?

Bitcoin is primarily a digital payment system, whereas Ethereum is a platform for decentralized applications, supporting smart contracts and custom tokens.

What is proof-of-stake in Ethereum?

After The Merge, Ethereum adopted proof-of-stake, where validators lock ETH as collateral to propose new blocks, replacing energy-intensive mining and drastically reducing power consumption.