Created in 2015, Ethereum is a decentralized platform for smart contracts.
Source: Motion Array
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. This provides an opportunity for users to earn additional coins while helping to secure and maintain the network.
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.
Source: CBS News
Ethereum is also considered a perfect platform for DeFi protocols because it is censorship-resistant, accessible to anyone with an internet connection, and has high security.
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, including MakerDAO, Synthetix, Uniswap, and 0x.