What is Ethereum?

Ethereum is an open-source blockchain platform designed for decentralized applications, allowing developers to create and deploy smart contracts without central authority. Founded in 2013 by Vitalik Buterin and six co-founders, it launched in July 2015 after raising over $18 million through crowdfunding. The network transitioned to a Proof of Stake consensus mechanism in September 2022 to enhance security and reduce energy consumption.

The Ethereum network relies on thousands of independent validators who stake Ether (ETH) to propose and validate blocks, earning rewards for participation. Ether serves multiple roles, including transaction fees, staking, collateral in DeFi protocols, and purchases in NFT marketplaces. The asset is increasingly recognized by traditional financial institutions. The project's roadmap aims to enhance transaction capacity and efficiency while ensuring future security measures against potential threats.