What is Ethereum?

Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and others, Ethereum extends blockchain technology beyond simple transactions to programmable, trustless computation.

Key Features:

• Smart Contracts: Self-executing code that runs exactly as programmed without intermediaries

• EVM: Ethereum Virtual Machine enables decentralized computation worldwide

• Programmable Money: ETH serves as both currency and computational fuel (gas)

• Proof of Stake: Energy-efficient consensus after The Merge upgrade

• Developer Ecosystem: Largest blockchain developer community and tooling

Ethereum Use Cases

Ethereum powers a vast ecosystem of decentralized applications across multiple industries:

• Decentralized Finance (DeFi): Lending, borrowing, trading, and yield farming protocols handling billions in value

• NFTs and Digital Art: Ethereum is the primary platform for non-fungible tokens and digital collectibles

• DAOs: Decentralized autonomous organizations for governance and collective decision-making

• Gaming and Metaverse: Blockchain-based games with true digital ownership

• Identity and Credentials: Decentralized identity solutions and verifiable credentials

• Supply Chain: Transparent tracking and verification of goods

Ethereum Market Position

Ethereum is the second-largest cryptocurrency by market capitalization and the dominant smart contract platform. Its network effects, developer community, and first-mover advantage in programmable blockchains create a strong competitive moat.

DeFi Dominance: Ethereum hosts the majority of DeFi protocols, with billions in total value locked across lending platforms, decentralized exchanges, and derivatives markets. Major protocols like Uniswap, Aave, and MakerDAO are built on Ethereum.

NFT Leadership: The largest NFT marketplaces and collections operate on Ethereum, including OpenSea, Art Blocks, and blue-chip collections like CryptoPunks and Bored Ape Yacht Club.

Institutional Integration: Enterprise adoption through private Ethereum implementations, Layer 2 scaling solutions, and integration with traditional finance. The transition to Proof of Stake reduced energy consumption by over 99%, addressing environmental concerns.