Samuel R40 Smith#42

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What is Ethereum and why is it important in crypto?

Ethereum is the second-largest cryptocurrency by market capitalization and the most widely used smart contract platform. Unlike Bitcoin, which is primarily a store of value and payment system, Ethereum enables decentralized applications (dApps) to run on its blockchain. Developers can create tokens, decentralized finance (DeFi) platforms, NFT marketplaces, and other blockchain-based tools using Ethereum’s programmable contracts. Its native currency, Ether (ETH), is used to pay gas fees for transactions and network operations. Ethereum’s transition to proof of stake (Ethereum 2.0) has improved scalability and energy efficiency, reinforcing its role as the backbone of decentralized finance. Its importance lies in being both a currency and a platform powering the majority of blockchain innovation.