$ETH
Ethereum (ETH) is a decentralized blockchain platform known for enabling the creation and execution of smart contracts and decentralized applications (DApps). It is the second-largest cryptocurrency by market capitalization after Bitcoin and plays a pivotal role in the blockchain ecosystem. Here's a brief overview:
Key Features of Ethereum:
Smart Contracts:
Ethereum introduced the concept of smart contracts—self-executing contracts with predefined conditions encoded in code. They eliminate the need for intermediaries in agreements.
Decentralized Applications (DApps)
Developers use Ethereum to build DApps across various industries, such as finance, gaming, and supply chain.
Native Currency (ETH)
Ether (ETH) is the native cryptocurrency of the Ethereum network.
It is used for:
Paying transaction fees (gas fees).
Staking in the Ethereum 2.0 network.
Facilitating peer-to-peer payments and value transfer.
Ethereum 2.0 (Proof of Stake)
Ethereum transitioned from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism in September 2022 (via "The Merge"). This upgrade:
Reduced energy consumption by ~99.9%.
Improved scalability and security.
Gas Fees
Transactions on Ethereum require "gas" fees, measured in gwei (a fraction of ETH). These fees incentivize network validators.
Ecosystem and Tokens
Ethereum supports various token standards, such as:
ERC-20: Used for fungible tokens (e.g., stablecoins like USDT).
ERC-721/1155: Standards for non-fungible tokens (NFTs).
Use Cases:
Decentralized Finance (DeFi): Enabling peer-to-peer lending, borrowing, and trading platforms.
NFTs: Facilitating digital ownership and trade of unique items.
Supply Chain Management: Tracking goods and ensuring transparency.
Gaming: Powering play-to-earn models and in-game asset ownership.