About Ethereum

Ethereum is a decentralized, open-source blockchain platform designed for the development and deployment of smart contracts and decentralized applications (dApps). Unlike traditional cryptocurrencies that primarily serve as digital currencies, Ethereum functions as a programmable global computer, allowing developers to create a wide range of decentralized services. The platform has become a cornerstone of the decentralized finance (DeFi) ecosystem, hosting a significant volume of applications that cater to various sectors, including finance, non-fungible tokens (NFTs), and gaming. Its transition to a Proof of Stake consensus mechanism in September 2022 marked a pivotal moment, drastically reducing energy consumption and enhancing network security. The Ethereum network operates through a distributed system of validator nodes that are responsible for processing transactions and executing smart contracts on the Ethereum Virtual Machine (EVM). Smart contracts, written in the Solidity programming language, automate agreements and eliminate the need for intermediaries. Validators stake Ether (ETH) to propose and validate new blocks, earning rewards for their participation while facing penalties for dishonest actions. The introduction of the EIP-1559 upgrade established a dynamic fee structure that burns a portion of ETH with each transaction, contributing to a deflationary model during periods of high network activity. Since its inception in 2015, Ethereum has evolved significantly, with key developments such as the launch of the Beacon Chain and the London hard fork, solidifying its position as a leader in the blockchain space.