Ethereum
Quick Answer
Ethereum is the second-largest cryptocurrency and a programmable blockchain platform that enables smart contracts and decentralized applications — extending blockchain technology beyond simple currency transfers.
Definition
Ethereum is the second-largest cryptocurrency and a programmable blockchain platform that enables smart contracts and decentralized applications — extending blockchain technology beyond simple currency transfers.
Explanation
Ethereum was launched in 2015 by Vitalik Buterin and enables developers to build decentralized applications on its blockchain. Its native currency Ether (ETH) pays for transactions and computational services. Ethereum transitioned from proof-of-work to proof-of-stake in 2022 reducing energy consumption significantly. Smart contracts are self-executing agreements coded on the blockchain. Ethereum is highly volatile and investing carries significant risk including possible total loss.
Example
A developer builds a decentralized lending protocol on Ethereum where users can borrow and lend crypto assets automatically through smart contracts without a traditional bank.
Frequently Asked Questions
What is Ethereum?
Ethereum is the second-largest cryptocurrency and a programmable blockchain platform that enables smart contracts and decentralized applications — extending blockchain technology beyond simple currency transfers.
How does Ethereum work?
Ethereum was launched in 2015 by Vitalik Buterin and enables developers to build decentralized applications on its blockchain. Its native currency Ether (ETH) pays for transactions and computational services. Ethereum transitioned from proof-of-work to proof-of-stake in 2022 reducing energy consumption significantly. Smart contracts are self-executing agreements coded on the blockchain. Ethereum is highly volatile and investing carries significant risk including possible total loss.
Can you give an example of Ethereum?
A developer builds a decentralized lending protocol on Ethereum where users can borrow and lend crypto assets automatically through smart contracts without a traditional bank.