Essential

What is Ethereum? Smart Contracts Explained

Ethereum is the platform powering DeFi, NFTs, and thousands of decentralized applications. Here's what you need to know.

What is Ethereum?

Ethereum is a programmable blockchain that goes beyond simple transactions. It enables smart contracts—self-executing agreements that power decentralized applications (dApps).

Bitcoin vs Ethereum

BitcoinEthereum
Digital goldWorld computer
Store of valuePlatform for apps
Simple transactionsProgrammable money

What are Smart Contracts?

Smart contracts are programs stored on the blockchain that run when conditions are met. They enable trustless automation of agreements.

Ethereum Use Cases

  • DeFi: Lending, borrowing, trading without banks
  • NFTs: Digital ownership and art
  • DAOs: Decentralized organizations
  • Gaming: Play-to-earn and asset ownership

ETH: The Fuel

Ether (ETH) is Ethereum's native currency, used to pay for transactions (gas) and as collateral in DeFi.