ETH

Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and applications without central authority control. Launched in July 2015 by Vitalik Buterin and co-founders including Gavin Wood and Joseph Lubin, Ethereum operates as a programmable global computer where developers can create decentralized services across finance, NFTs, gaming, and other sectors, hosting over $14 billion in decentralized finance applications. Unlike Bitcoin's focus on digital currency, Ethereum uses the Ethereum Virtual Machine to execute self-executing smart contracts written in Solidity that automatically carry out agreements when conditions are met. The network transitioned to Proof of Stake consensus in September 2022, reducing energy consumption by over 99% while enabling validators to stake ETH as collateral to secure the network and earn rewards. Ether (ETH) functions as the platform's native token, used for paying transaction fees, staking to generate yields, serving as collateral in DeFi protocols, and purchasing digital assets. The EIP-1559 upgrade introduced dynamic fee burning that creates deflationary pressure during high network activity, and the platform is pursuing significant scalability improvements to increase transaction capacity to over 100,000 transactions per second while maintaining security and decentralization.