What is Ethereum (ETH)?
Ethereum (ETH) is the second-largest cryptocurrency by market capitalization, known for introducing smart contracts, decentralized finance (DeFi), and decentralized applications (DApps). Since its launch in 2015 by Vitalik Buterin, Ethereum has set to revolutionize the blockchain industry by enabling decentralized applications to run on a global network of nodes. Ethereum uses Ether (ETH) as its native currency, powering transactions and smart contracts.
Ethereum’s Core Utility and Ecosystem
Ethereum’s utility lies in its ability to support smart contracts, allowing developers to build decentralized applications (DApps) across industries like finance, gaming, and supply chain. These DApps function autonomously without central authority. Ethereum is also the foundation for NFTs (non-fungible tokens), decentralized exchanges (DEXs), and other DeFi protocols, making it a core component of the decentralized internet.
Ethereum enables the execution of smart contracts, providing a trustless environment for users to transact. Gas fees, paid in ETH, ensure the network's operations remain efficient. Every transaction or smart contract interaction requires gas, making ETH a critical asset in the blockchain economy. The Ethereum blockchain has grown into a comprehensive network for decentralized apps, NFTs, and more.
What is the Ethereum Pectra Upgrade?
Ethereum's Pectra upgrade marks a significant step in enhancing account abstraction, validator efficiency, and network performance. With features like increased validator stake limits, flexible staking withdrawals, and streamlined smart contract deployment, Pectra sets the stage for the next phase of scalability.
Key Features of the Pectra Upgrade:
Account Abstraction: Simplifying the user experience with abstracted accounts, making wallet management more intuitive.
Validator Operations: Enhanced validator performance with flexible staking and better operational efficiency.
Improved Data Handling: Incorporation of Verkle trees for efficient data storage and transaction processing.
Pectra introduces new technical standards that enhance both the security and functionality of the Ethereum network, preparing it for future upgrades. Learn more about Ethereum's upcoming Pectra Upgrade and how it will affect you as a user.
Ethereum’s Transition: From Proof-of-Work to Proof-of-Stake
Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) with the Ethereum Merge in September 2022. This upgrade reduced Ethereum’s energy consumption by over 99%, as the network now relies on validators staking ETH to secure the blockchain instead of miners solving complex puzzles.
Ethereum 2.0 Roadmap: What Comes Next?
Ethereum’s development roadmap includes several major upgrades designed to enhance scalability and performance:
Phase 0 (Beacon Chain): Introduced PoS.
Phase 1 (The Merge): Completed Ethereum’s shift to PoS.
Phase 2 (Sharding): Expected between 2023 and 2024, sharding will reduce network congestion and improve scalability by enabling parallel processing of transactions.
Ethereum's native token, Ether (ETH), has several utilities within the Ethereum ecosystem. It is primarily used to pay transaction fees, known as gas fees, which incentivize validators to process transactions and secure the network.
ETH is available on Binance for purchase and trade. The live price of Ethereum (ETH) is updated and available in real time on Binance.