Ethereum (ETH)

What is Ethereum (ETH)?

Ethereum is a decentralized, open-source blockchain platform that enables the creation of decentralized applications (dApps) and smart contracts. Unlike Bitcoin, which was created primarily as a digital currency, Ethereum is a platform that allows developers to build their own applications on top of its blockchain.

How does Ethereum work?

Ethereum operates using a proof-of-work (PoW) consensus algorithm, meaning that miners use computational power to solve complex mathematical problems and validate transactions on the network. However, Ethereum is in the process of transitioning to a proof-of-stake (PoS) consensus algorithm, which will rely on validators holding a certain amount of ETH rather than computational power.

One of the most significant features of Ethereum is its ability to create smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. These contracts allow for automated and trustless transactions, removing the need for intermediaries like banks or other financial institutions.

Conclusion

Ethereum is a powerful blockchain platform that offers a range of features and benefits for developers and users alike. With its ability to create decentralized applications, smart contracts, and fast, secure, and efficient transactions, Ethereum is becoming an increasingly popular payment tool for businesses and individuals around the world.