Guide
Ethereum Explained: Smart Contracts and ETH
Bottom line: a programmable blockchain
Ethereum, launched in 2015, is a blockchain that supports smart contracts — programs that run automatically. While Bitcoin focuses on payments and store-of-value, Ethereum is a platform for apps. Its native coin is ETH.
Key takeaways
Ethereum runs smart contracts, powering DeFi and NFTs. In 2022 it moved from mining to Proof of Stake (the "Merge"), and Layer-2 networks make it cheaper and faster.
What you can build
- DeFi — lending, trading, stablecoins
- NFTs — digital ownership
- DAOs — community-run organizations
Gas fees & Layer 2
Using Ethereum costs a gas fee that rises when the network is busy. Layer-2 networks (like Arbitrum and Optimism) settle to Ethereum while being cheaper and faster.
Sources
- Ethereum.org: https://ethereum.org/en/
Not financial advice
This article is for information only and is not investment advice. Crypto assets are volatile and carry risks including hacking. Do your own research and only use money you can afford to lose.
This article is informational only and is not financial, investment, or trading advice. Prices are reference snapshots and may be outdated. Always do your own research.
