Ethereum ETH

About Ethereum

Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (ETH) is the native cryptocurrency of the platform. It is the second-largest cryptocurrency by market capitalization, after Bitcoin. Ethereum is the most actively used blockchain.

Ethereum was proposed in 2013 by programmer Vitalik Buterin. Development was crowdfunded in 2014, and the network went live on 30 July 2015, with 72 million coins premined. The Ethereum Virtual Machine (EVM) can execute scripts and run decentralized applications.

Key Features

• Smart Contracts: Self-executing contracts with the terms directly written into code.
• Decentralized Applications (DApps): Applications that run on a P2P network of computers rather than a single computer.
• ERC-20 Tokens: A standard interface for fungible tokens.
• Non-Fungible Tokens (NFTs): Unique digital assets that represent ownership of a specific item.
• Decentralized Finance (DeFi): Financial applications built on blockchain technologies.

Technology

Ethereum originally used a Proof of Work (PoW) consensus mechanism, but in September 2022, it transitioned to a Proof of Stake (PoS) consensus mechanism through an upgrade known as "The Merge." This transition significantly reduced Ethereum's energy consumption by approximately 99.95%.

The Ethereum blockchain is constantly evolving, with ongoing upgrades aimed at improving scalability, security, and sustainability. Major upgrades include the Beacon Chain, The Merge, and upcoming improvements like sharding.