What is Ethereum?
Ethereum is a blockchain platform with its own ETH coin (ether), launched in 2015. Unlike networks designed solely for transfers, Ethereum allows you to run smart contracts — programs that execute automatically when specified conditions are met.
How it Works
The network uses a Proof-of-Stake mechanism: validators lock (stake) ETH and gain the right to confirm transactions and receive rewards. ETH serves as the platform's "fuel" — it pays transaction fees (gas) for any operations. Thousands of tokens have been issued on Ethereum, with DeFi protocols and NFT marketplaces operating on it.
Pros and Cons
- Pros: largest application ecosystem, passive income opportunity through staking, high liquidity.
- Cons: periodically high fees on the main network, volatility, technological complexity for beginners.