BitcoinMadeClear

What is Ethereum?

Ethereum is a blockchain platform that can run programs called smart contracts. Its native asset is called ether, with the short label ETH. It is a different system from Bitcoin.

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What does that mean for you?

A smart contract carries out written rules on the network. The word contract does not mean a program is safe, correct or an agreement a court will enforce in every situation.

Ethereum uses proof-of-stake, in which validators lock up coins to participate in adding blocks. Bitcoin uses proof-of-work, with miners spending computing effort and energy.

What is Ethereum?Ethereum: Platform for blockchain programs. Ether (ETH): Its native asset. Smart contracts: Programs following written rules.EthereumPlatform for blockchain programsEther (ETH)Its native assetSmart contractsPrograms following written rules
Ethereum: Platform for blockchain programs. Ether (ETH): Its native asset. Smart contracts: Programs following written rules.

Can you picture an example?

Imagine someone mentions an application running on Ethereum. They are describing software using that network, not a feature automatically available on Bitcoin. A shared word like blockchain does not make the systems interchangeable.

What should you remember?

Distinguish the platform, its native asset and tokens recorded through it. Each can raise different questions. This introduction does not compare prices, recommend an asset or cover how to connect to an application.

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