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Ethereum — Complete Deep Analysis & Full Guide
1. What is Ethereum?
Ethereum is a decentralized blockchain platform designed not only for digital currency, but also for smart contracts and decentralized applications (dApps).
It was created by Vitalik Buterin and launched in 2015. Unlike Bitcoin, which focuses mainly on being a store of value, Ethereum is a programmable blockchain, meaning developers can build applications directly on it.
2. How Ethereum Works
Ethereum operates using a decentralized network of nodes that validate transactions and execute smart contracts.
Key Components:
Smart Contracts → Self-executing programs
Ethereum Virtual Machine (EVM) → Runs smart contracts
Gas Fees → Paid to execute transactions
Validators → Secure the network (Proof of Stake)
👉 Every transaction or interaction requires computational effort, which is paid in ETH.
3. Ethereum 2.0 & Proof of Stake
Ethereum has transitioned from Proof of Work (PoW) to Proof of Stake (PoS).
Before:
Mining (like Bitcoin)
High energy consumption
Now:
Validators stake ETH
More energy efficient
Faster transactions