What is Ethereum?

Ethereum, launched in 2015 by Vitalik Buterin, is an open-source and decentralized blockchain platform. Unlike Bitcoin, it goes beyond being just a digital currency, providing advanced infrastructure for smart contracts and decentralized applications (DApps).

Key Differences of Ethereum

• Enables automatic and secure transactions through smart contracts.
• Supports decentralized finance (DeFi) applications.
• Provides infrastructure for Non-Fungible Token (NFT) markets.
• Transitioned to Proof of Stake (PoS) making it more eco-friendly.

What are Smart Contracts?

Smart contracts are self-executing pieces of code that operate without the need for intermediaries. Ethereum's network runs these contracts reliably, enabling use in finance, gaming, healthcare, logistics, and many other areas.

Ethereum Use Cases

• **DeFi:** Decentralized exchanges (DEX), lending platforms, insurance applications.
• **NFT:** Unique token production for digital art and collectibles.
• **Metaverse:** Usage of Ethereum-based assets in virtual world projects.
• **DAO:** Decentralized Autonomous Organizations with community-driven decision-making.

ETH Coin and Gas Fees

Ethereum's native cryptocurrency, **ETH**, is used to perform transactions on the network. Users making transactions on the Ethereum network pay **gas fees**, which vary depending on network activity and are distributed as rewards to miners (or validators in PoS).

Ethereum 2.0 and the Future

In 2022, Ethereum transitioned to the Proof of Stake (PoS) mechanism, significantly reducing energy consumption. This upgrade made the Ethereum network faster, more secure, and scalable. Ethereum's ecosystem is also addressing transaction fees through Layer 2 solutions (Optimistic Rollups, zk-Rollups).