Ethereum (ETH)

An introduction into Ethereum
Written by StakeSeeker
Updated 11 months ago

Ethereum (ETH)

Ethereum is a decentralized blockchain that was launched in 2015 by Vitalik Buterin. Unlike Bitcoin, Ethereum is not just a digital payment system, but also a platform for building decentralized applications (dApps) and executing smart contracts. Smart contracts are self-executing programs that are stored on the blockchain and can automatically execute the code of a smart contract when certain conditions are met.

Another significant feature of Ethereum is its ability to enable the creation of custom tokens. These tokens can serve various purposes, such as acting as a medium of exchange, facilitating governance, or representing unique digital assets. The flexibility provided by the platform makes it ideal for developers and businesses looking to create decentralized applications or integrate blockchain technology into their existing products or services.

On September 15, 2022, Ethereum completed a significant upgrade called "The Merge." This major change transformed the protocol's fundamental workings by transitioning Ethereum from a Proof-of-Work to a Proof-of-Stake blockchain. Now, the platform is entirely managed by validators or nodes that stake ETH as collateral to suggest new blocks. This is a huge step forward to hopefully improve the decentralization and scalability of the network.

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