How does Ethereum (ETH) work?

Ethereum is a blockchain-based platform that runs smart contracts. Smart contracts are self-executing contracts that can be used to automate transactions. For example, a smart contract could be used to automatically transfer money from one person to another when certain conditions are met.

Ethereum works by using a decentralized network of computers to verify transactions. These computers are called nodes, and they are responsible for maintaining the Ethereum blockchain. When a new transaction is made, it is broadcast to all of the nodes in the network. The nodes then verify the transaction and add it to the blockchain.

The Ethereum blockchain is a public ledger, which means that anyone can view the transactions that have been made. This makes Ethereum a transparent platform, and it helps to ensure that the transactions are secure.

Here are some of the key concepts behind how Ethereum works:

  • Blockchain: A blockchain is a distributed ledger that records transactions in a chronological order. The Ethereum blockchain is a public blockchain, which means that anyone can view it.
  • Smart contracts: Smart contracts are self-executing contracts that can be used to automate transactions. They are written in code and stored on the Ethereum blockchain.
  • Nodes: Nodes are computers that are connected to the Ethereum network. They are responsible for verifying transactions and adding them to the blockchain.
  • Gas: Gas is a unit of measurement that is used to pay for transactions on the Ethereum network. The amount of gas that is required for a transaction depends on the complexity of the transaction.

Conclusion

Ethereum is a powerful platform that has the potential to revolutionize the way we interact with the world. It is a decentralized platform, which means that it is not controlled by any central authority. This makes it more secure and resistant to censorship.

Ethereum is also a flexible platform, which means that it can be used to create a variety of applications. This makes it a good platform for businesses and developers who want to create new applications.