Ethereum Network

When somebody says crypto market, it is automatically considered as Bitcoin and probably also ethereum cryptocurrencies. The first one is the pop-culture icon, the second one, the perfect tool for creating smart contracts, making NFTs, transferring them and earn money on DeFi.

Moreover, many projects was created on Ethereum blockchain, such as polygon (MATIC). These projects, decreased fees in a network, but use features of ethereum, which is like a core to decentralized finances.

Agenda:

• Intro,
• Definition,
• How it works,
• Use cases,
• Coins.

Definition

Ethereum is an open-source decentralized blockchain, which main feature is creating and deploying smart contracts. It was conceived in 2013 year by Vitalik Buterin. Native cryptocurrency in ethereum blockchain is ether.

Among all cryptocurrencies in a market, ethereum is second, by capitalization in USD. The first one is Bitcoin (data from 2022). To learn more about bitcoin network, you can visits my latest tweet:

How it works

Ethereum works on a decentralized ledgers called blockchain, it tracks coins and register transactions.

More about blockchain you will find there:

What differs Ethereum from another blockchains and especially from bitcoin, is the ability to store, create and execute smart contracts. Simply, smart contract is a peer-to-peer deal, without any middlemen. It automatically proceed the terms included there and transfer coins.

More about smart contracts you will find in this material:

https://twitter.com/kacperhernacki/status/1549014968653201409?s=21

Use Cases

Ethereum, by smart contracts also allows to create and maintain decentralized finances (DeFi), decentralized applications (Dapp), decentralized autonomous organizations (DAO).

More about DAO you will find there:

Coins

Ether coins are mined using proof of work concept, it is very similar to bitcoin functioning. I Described this consensus model in latest tweet:

However, with the merge and creating Ethereum 2.0, this concept will be changed to proof of stake, what totally changes performance of the chain.

More about proof of stake, you will find in the link below: