$ETH Ethereum (ETH) is the second largest cryptocurrency and a leading decentralized blockchain platform that supports smart contracts and decentralized applications (dApps), using its native currency, Ether (ETH), to pay network fees. It is broader than just a cryptocurrency, enabling the creation of decentralized financial systems (DeFi), and it now operates on a Proof of Stake (PoS) system following the "The Merge" upgrade, enhancing energy efficiency. Ethereum allows for the creation of smart contracts that automatically execute agreements, reducing the need for intermediaries and increasing transparency.

What is Ethereum?

Blockchain platform: A decentralized network that allows secure applications and programs to run without a central authority.

Smart contracts: Programs on the blockchain that automatically execute terms when met, eliminating the need for trust between parties.

Ether (ETH): The native digital currency of the network, used to pay "gas fees" (transaction fees) and incentives for miners/validators.

How does it work?

Network: Transactions are verified in a decentralized manner by a network of nodes (computers).

Smart contracts: Developers write the code for the application or agreement (such as a contract to send ETH on a specific date) and it runs on the blockchain.

Consensus mechanism: The network transitioned from Proof of Work (PoW) to Proof of Stake (PoS) to increase efficiency and reduce energy consumption.

Its importance and applications