When people talk about cryptocurrencies, they often focus on Bitcoin. But there’s another digital currency that’s been gaining ground lately, Ethereum. So, what is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is built on a blockchain, just like Bitcoin. But the blockchain of Ethereum is different.
It’s programmable, which means that developers can build applications on top of it. These applications can be anything from a simple decentralized game to a complex financial application.
NOTE: WARNING: Ethereum is neither a coin nor token. It is a decentralized open-source platform that supports the creation of digital tokens and coins. The tokens and coins created on the Ethereum platform are known as ERC20 tokens and Ether coins, respectively. As such, they should not be confused with Ethereum itself.
The Ethereum blockchain is powered by ETH, which is Ethereum’s native currency. ETH is sometimes called Ether, and it’s often used to pay for transaction fees and computational services on the Ethereum network.
So, is Ethereum a coin or a token? The answer is both. ETH is both a coin and a token.
It’s a coin because it has its own blockchain, and it’s a token because it’s used to power the Ethereum network.
Some people think that Ethereum is better than Bitcoin because it’s more versatile. While Bitcoin is mainly used as a store of value, Ethereum can be used for much more than that.
But whether or not Ethereum is better than Bitcoin is up for debate.
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Decentralized finance—often called “DeFi”—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols that are changing the way we interact with financial services. By deploying immutable smart contracts on Ethereum, DeFi developers can launch financial protocols and platforms that run exactly as programmed and that are available to anyone with an Internet connection.
When it comes to meme coins, there is no coin more popular or well known than Ethereum. Created in 2015, Ethereum is a decentralized platform that runs smart contracts. It is also the second largest cryptocurrency by market capitalization, behind only Bitcoin.
