What is Ethereum?

Ethereum is a decentralized blockchain platform established in 2015, co-founded by Vitalik Buterin, Gavin Wood, and Joseph Lubin, among others. It enables developers to build and deploy smart contracts and decentralized applications through the Ethereum Virtual Machine, utilizing the programming language Solidity. The native cryptocurrency, Ether (ETH), is used for transaction fees, staking, and collateral in decentralized finance (DeFi) protocols.

In 2022, Ethereum transitioned to a Proof of Stake consensus mechanism, reducing energy consumption significantly while enhancing network security. The protocol allows validators to stake ETH to propose and validate new blocks, with a dynamic fee mechanism introduced by the EIP-1559 upgrade. Ethereum's roadmap aims to increase transaction capacity and improve confirmation times, while addressing potential security concerns related to future technologies.