Ethereum (ETH) is a decentralized, open-source blockchain platform that supports smart contracts, decentralized applications (DApps), and the Ether cryptocurrency (ETH). Created by Vitalik Buterin and launched in 2015, Ethereum was designed to be more than a digital currency; it serves as a flexible framework for building a wide range of blockchain applications. While Bitcoin functions mainly as a decentralized digital currency, Ethereum’s blockchain was specifically developed to handle more complex programming through its own coding language, Solidity.

The Ethereum network operates through smart contracts, which are self-executing agreements written in code. These contracts automatically enforce their terms without intermediaries, enabling applications like decentralized finance (DeFi), non-fungible tokens (NFTs), and supply chain solutions. Ether (ETH), the native currency, is used to pay for gas and the transaction fees needed to process activities on the network. Gas fees vary depending on network demand and computational requirements.

Initially, Ethereum used Proof of Work (PoW) to validate transactions, similar to Bitcoin. However, with Ethereum 2.0, it transitioned to Proof of Stake (PoS). This shift allows participants to stake their ETH as collateral, making the network more energy-efficient and scalable. Ethereum’s robust ecosystem and pioneering use of smart contracts have solidified its role in the blockchain space.