Ethereum (ETH) ranks as the second-largest cryptocurrency by market capitalization, a status largely due to its introduction of smart contract functionality. This innovation has catalyzed the growth of decentralized finance (DeFi) and decentralized applications (DApps), significantly expanding the cryptocurrency industry’s range of use cases.
Ethereum was launched in 2015 by Vitalik Buterin, a Russian-Canadian programmer. The platform operates on a decentralized model, meaning no single entity has control over it.
Ethereum enables users to develop and deploy software, primarily in the form of decentralized applications (DApps). These applications operate on a globally distributed network of computers running Ethereum software. The decentralized nature of the network enhances its resistance to censorship and minimizes downtime.
Moreover, Ethereum is an open-source blockchain platform that operates using its native currency, Ether (ETH). All network transaction fees, commonly referred to as ‘gas fees,’ are payable in ETH. This currency is essential for facilitating transactions on the Ethereum blockchain and powers virtually all activities within the network.
The Ethereum network enables anyone to create and execute smart contracts—self-operating software programs that function without the need for user intervention. Ethereum’s significant growth is partly due to these smart contract capabilities, which have fostered a burgeoning ecosystem of decentralized applications (DApps), non-fungible tokens (NFTs), and more.
