What Is Ethereum?

Created in 2015, Ethereum is a decentralized platform for smart contracts

While Bitcoin is based on blockchain technology, Ethereum distinguishes itself by relying on decentralized applications (DApps)

Recently, Ethereum has transitioned its model from proof of work (POW) to proof of stake (POS), allowing users to stake ether coins (ETH) in return for more ETH rewards

Staking is a key feature of Ethereum 2.0- an upgrade aimed at improving the network's speed, scalability, and sustainability

With staking, users can validate transactions on the Ethereum network and earn new ETH coins as staking rewards

To be a validator node on the Ethereum network, a minimum of 32 ETH is required

Source: Freepik

Ethereum actively supports the development of decentralized applications meaning that developers can create applications without relying on a third party to function

This is significant because it has the potential to build secure applications and lower costs for users

Ethereum is also considered a perfect platform for DeFi protocols because it is censorship-resistant, accessible to anyone with an internet connection

Even though Ethereum is just a few years old, Ethereum has quickly emerged as the preferred platform for a wide range of decentralized finance (DeFi) protocols