Ethereum, launched in 2015 by Vitalik Buterin, is a decentralized, open-source blockchain platform that enables the creation and execution of smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily serves as a digital currency, Ethereum aims to be a global platform for decentralized computing.

The Ethereum network operates using its native cryptocurrency, Ether (ETH), which functions as both a digital currency and "fuel" for running applications on the network. Smart contracts on Ethereum are self-executing contracts with the terms of the agreement directly written into code. These contracts automatically enforce and execute agreements without the need for intermediaries, reducing the risk of fraud and lowering transaction costs.

Ethereum's innovation lies in its versatility and programmability. Developers can create and deploy a wide range of dApps, from financial services and games to social networks and supply chain management tools. This has led to a thriving ecosystem and the rise of decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain-based innovations.

One of Ethereum's significant advancements is the transition from its original proof-of-work consensus mechanism to proof-of-stake, known as Ethereum 2.0 or Eth2. This upgrade aims to improve the network's scalability, security, and energy efficiency.

Despite facing competition from other blockchain platforms and challenges such as scalability and high transaction fees, Ethereum continues to be a cornerstone of the blockchain industry, driving innovation and adoption across various sectors.$ETH