Ethereum is one of the most popular and important digital currencies in the world of financial technology and blockchain. Founded by Vitalik Buterin in 2015, it quickly gained a strong reputation as a decentralized platform that enables developers to build DApps and execute Smart Contracts.
### What's special about Ethereum?
1. **Smart Contracts**: Smart contracts allow transactions to be completed automatically when certain conditions are met, without the need for intermediaries. This technology has opened the door to a wide range of applications, from decentralized finance (DeFi) to gaming, insurance, and supply chains.
2. **Decentralized Finance (DeFi)**: Ethereum is the backbone of many DeFi projects, where users can lend and borrow money, trade assets, and earn interest on their digital holdings in a completely decentralized way.
3. **Decentralized Applications (DApps)**: Ethereum enables developers to build applications that run directly on the blockchain, providing high transparency and security for users.
4. **Ethereum 2.0**: This is the new version of the network that aims to improve scalability and security by switching from a Proof of Work (PoW) algorithm to a Proof of Stake (PoS) algorithm. This update promises to deliver a faster and more energy-efficient network.