What is Ethereum ?

Ethereum is a blockchain based technology for building apps, holding assets & transacting in a decentralised manner. Ethereum also enables the creation of smart contracts and decentralised applications (dApps). It has its own cryptocurrency, called Ether (ETH), which is used to pay for transaction fees and incentivize validators who maintain the network.

How does it work?

Ethereum uses a proof-of-stake (PoS) consensus mechanism to validate transactions and add new blocks to the blockchain. Validators are selected based on the amount of Ether they are willing to "stake" or lock up as collateral. Validators are responsible for processing transactions and securing the network,

What are the features of Ethereum?

1. Smart contracts: Ethereum allows for the creation and execution of smart contracts, which are self-executing computer programs that can automate a wide range of processes and applications.

2. Decentralization: Ethereum is a decentralized platform, meaning that it operates without a central authority or middlemen. This makes it more resistant to censorship, fraud, and hacking.

3. Programmable money: Ethereum's native cryptocurrency, Ether (ETH), is programmable, meaning that it can be used to create more complex financial instruments and applications.

4. Interoperability: Ethereum is compatible with other blockchain platforms, allowing for interoperability and collaboration between different projects.

What is a smart contract?

A smart contract is a self-executing computer program that automatically enforces the rules of an agreement or transaction. It is deployed on a blockchain, cannot be modified, and eliminates the need for intermediaries or trusted third parties. It is a key feature of Ethereum.

What are decentralised applications (dApps)?

Dapps, short for decentralized applications, are computer programs that run on a decentralized network like Ethereum. They don't need a central authority or middlemen to function, and instead rely on smart contracts to automatically execute code. Dapps can be used for a wide range of applications, such as online games, social media, and financial services.

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