What is Ethereum? A Beginner’s Guide to the World’s Second-Largest Cryptocurrency

Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It is the second-largest cryptocurrency by market capitalization, after Bitcoin. In this beginner’s guide, we’ll explain what Ethereum is, how it works, and why it is important.

What is Ethereum?

Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It was created in 2015 by Vitalik Buterin, a programmer and cryptocurrency researcher. Ethereum is different from Bitcoin in that it is not just a digital currency, but a platform that allows for the creation of decentralized applications.

How does Ethereum work?

Ethereum is based on a blockchain, which is a decentralized, digital ledger that records all transactions on the network. The blockchain is maintained by a network of computers, called nodes, that work together to validate and record transactions.

On the Ethereum network, transactions are processed by the nodes, and each transaction is grouped into a block. These blocks are then added to the blockchain in a linear, chronological order. This process is known as mining.