What is Ethereum (ETH)? Learn what Ethereum (ETH) is in one minute

Ethereum's decentralized platform empowers developers to build and host decentralized applications, facilitate smart contracts, and enable NFT trading.

Oct 02, 2024 at 03:06 am

What is Ethereum (ETH)?

Ethereum is a decentralized blockchain platform that hosts a variety of decentralized applications and allows developers to build and deploy smart contracts. Launched in 2015 by Vitalik Buterin, Ethereum has become the second largest cryptocurrency by market capitalization, after Bitcoin.

1. What is Ethereum Used For?

Ethereum has a wide range of applications, including:

• Creating decentralized applications (dApps)
• Issuing and managing tokens
• Enabling smart contracts
• Facilitating non-fungible token (NFT) trading

2. How Does Ethereum Work?

Ethereum uses a Proof-of-Work consensus mechanism, where miners compete to validate transactions by solving complex mathematical problems. Successful miners receive rewards in the form of ETH.

3. What is an Ethereum Smart Contract?

A smart contract is a computer program stored on the Ethereum blockchain that executes actions when predefined conditions are met. This allows for the creation of self-executing contracts that eliminate the need for intermediaries and reduce transaction costs.

4. What is Ethereum Gas?

Gas refers to the fee paid to miners for processing transactions and executing smart contracts on the Ethereum network. Gas prices fluctuate based on network traffic and demand.

5. What is the Difference Between ETH and ETC?

Ethereum Classic (ETC) is a fork of the Ethereum blockchain that emerged in 2016. It is similar to Ethereum but operates on slightly different rules, such as the acceptance of a larger block size.