Ethereum is the second main blockchain behind Bitcoin. It allows developers to build and run applications without a central authority in very different categories.
Ethereum was introduced in 2015, and it was the first cryptocurrency to feature the smart contract concept, which are simply programs that automatically execute outputs based on defined inputs, or when defined conditions are met without a need to a middleman.
Smart contracts are the building blocks for decentralized applications (dApps), which can actually run applications in finance, gaming, digital assets, supply chain, and many more categories. Two of the most popular dApps in DeFi are “Uniswap”, a decentralized trading protocol, and “Aave”, a decentralized lending protocol, which are used to process transactions without a bank or intermediary.Â
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Ether (ETH) is the primary currency on the Ethereum network that is used to process transactions, as well as power the network. In addition to processing transactions, a small fee is charged to this currency for any transactions processed on the network or for executing contracts on the network, called gas fees which also saves the network from scams attempts.
In 2022, Ethereum ran a major upgrade called The Merge that transitioned from a proof-of-work, which mainly depends on mining system, to a Proof-of-Stake (PoS) system.