What is Ethereum?
Ethereum is a decentralized, blockchain-based platform that enables secure, peer-to-peer transactions and supports smart contracts—self-executing code that runs without intermediaries. Launched in 2015, Ethereum’s native cryptocurrency is called Ether (ETH), which is widely used for payments, decentralized finance (DeFi) applications, and as “gas” to power operations on the network. Ethereum offers global reach and operates independently from banks or governments, making transfers of value and programmable logic accessible worldwide. Thanks to continuous upgrades, including the shift to a proof-of-stake consensus, Ethereum aims to provide improved scalability, security, and energy efficiency compared to earlier blockchain protocols.
How to use Ethereum?
- Choose and set up a crypto wallet that supports Ethereum.
- Buy or receive Ether (ETH) through an exchange or from another user.
- Transfer ETH to your wallet address.
- Use ETH to make payments, access DeFi apps, or interact with smart contracts.
- Safely store wallet private keys and monitor transactions on the Ethereum blockchain.
The pro's of using Ethereum
- Global accessibility allows anyone to send and receive ETH, bypassing traditional banks.
- Supports smart contracts, enabling automated, trustless transactions and a wide range of decentralized applications.
- Fast settlement times compared to international wire transfers.
- High security due to decentralized blockchain structure and robust cryptography.
The con's of using Ethereum
- Transaction fees (“gas”) can fluctuate significantly and become costly during periods of network congestion.
- Irreversible transactions increase the risk of errors or fraud.
- Crypto wallets and private keys are targets for scams, theft, and loss—users bear sole responsibility for security.
- Regulatory uncertainties can impact usage and acceptance in certain regions.