Ethereum

What is Ethereum?

Ethereum (ETH) is a decentralized, open-source blockchain platform that enables the creation and execution of smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and other co-founders, Ethereum expanded blockchain technology beyond simple transactions to programmable money.

How Ethereum Works

Ethereum uses the Ethereum Virtual Machine (EVM), a global computing network that executes smart contracts. Developers write smart contracts in languages like Solidity, and users pay "gas" fees in ETH to execute operations on the network. In 2022, Ethereum transitioned from Proof of Work to Proof of Stake with "The Merge."

Key Features

• Smart Contracts: Self-executing code on the blockchain
• EVM: Turing-complete virtual machine for running programs
• Proof of Stake: Energy-efficient consensus after The Merge
• Token Standards: ERC-20, ERC-721 (NFTs), ERC-1155
• DeFi Hub: Foundation for decentralized finance

Tokenomics

• Supply: No maximum cap (but deflationary with EIP-1559)
• Block Time: ~12 seconds
• Gas Fees: Paid in ETH for all transactions
• Staking Rewards: ~3-5% APY for validators
• Consensus: Proof of Stake (post-Merge)

Use Cases

• Decentralized Finance (DeFi) applications
• Non-Fungible Tokens (NFTs)
• Decentralized Autonomous Organizations (DAOs)
• Gaming and metaverse platforms
• Enterprise blockchain solutions

Ecosystem

Ethereum has the largest developer community and hosts thousands of dApps across DeFi, NFTs, gaming, and more. Major Layer 2 solutions like Arbitrum, Optimism, and Polygon help scale the network by processing transactions off the main chain.