What Is Ethereum? – Complete Guide to ETH
Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Conceived by Vitalik Buterin in 2013 and launched in July 2015, Ethereum was designed to extend blockchain technology far beyond simple value transfers.
At the heart of Ethereum is the Ethereum Virtual Machine (EVM) — an execution environment that processes smart contracts and ensures code runs exactly as written, without central oversight. This design allows developers to build trustless, transparent applications for use in finance, digital identity, supply chain management, gaming, and more.
How Ethereum Works
- Smart Contracts: Self-executing agreements with terms written directly in code
- dApps: Decentralized applications running on Ethereum's global network of nodes
- ETH (Ether): The native token used to pay for gas fees and secure the network
- Proof of Stake: Ethereum transitioned from energy-intensive mining to PoS in 2022
- EIP-1559: Burns a base fee from each transaction, making ETH potentially deflationary
Ethereum vs. Bitcoin
While Bitcoin is primarily a digital store of value and peer-to-peer payment system, Ethereum is a general-purpose programmable blockchain. Developers can build on Ethereum to create DeFi protocols, NFT marketplaces, DAOs (decentralized autonomous organizations), and much more. This programmability is why Ethereum commands the second-highest market cap and why analysts remain bullish on its long-term potential.
Ethereum's open-source nature and globally active developer community drive continuous protocol improvements. The network has undergone major upgrades including the London hard fork (EIP-1559), the Merge (PoS transition), and various layer 2 scaling solutions.
