What is Ethereum? Complete guide on the second largest crypto worldwide
Ethereum is today the second most known and used cryptocurrency after Bitcoin, but it is not limited to being a simple digital currency. Launched in 2015, this decentralized platform revolutionized the blockchain world by introducing âsmart contractsâ and paving the way for a decentralized financial ecosystem called DeFi. This complete guide will explain what Ethereum is, how it works, its practical uses, as well as its current and future challenges.
Origins and functioning of Ethereum
Ethereum was created by Vitalik Buterin, a young visionary programmer, who wanted to go beyond the simple function of digital currency. While Bitcoin was designed as a store of value and a means of exchange, Ethereum is a blockchain platform allowing the execution of decentralized applications (dApps) via smart contracts. These contracts automate transactions or operations without intermediaries.
The Ethereum network operates thanks to a public blockchain and a native token called Ether (ETH). In April 2024, Ethereumâs stock market capitalization exceeds 200 billion dollars, with a unit price around 1,600 USD. Unlike Bitcoin, Ethereum has no fixed limit on the total number of ETH, but the recent âEthereum 2.0â update aims to improve scalability and reduce currency inflation.