Ethereum is a decentralized blockchain platform designed to execute smart contracts and power decentralized applications (dApps) without intermediaries. Its programmable architecture enables developers to build trustless systems for finance, governance, and digital ownership, spurring innovations like:
Web3: User-owned social platforms and identity solutions
DeFi: Permissionless lending/borrowing protocols (e.g., Aave, Compound)
NFTs: Verifiable ownership of digital art, collectibles, and IP
DAOs: Community-governed organizations with token-based voting
At its core, Ethereum combines two key components:
- Ethereum Virtual Machine (EVM): A globally distributed runtime environment that processes smart contracts identically across all network nodes, ensuring deterministic execution.
- Proof-of-Stake (PoS): A consensus mechanism where validators stake ETH to propose/blocks and earn rewards, replacing energy-intensive mining with a 99% more efficient validation system since 2022’s “Merge” upgrade.
The network’s native token, ETH, serves as both transactional fuel (gas fees) and staking collateral, aligning economic incentives with network security. By abstracting blockchain complexity into developer-friendly tools, Ethereum has become the foundational layer for over 4,400 dApps spanning gaming, prediction markets, and institutional-grade financial infrastructure.