Ethereum is a decentralized, open-source blockchain network launched in 2015 by Vitalik Buterin and co-founders. Unlike Bitcoin, which primarily functions as digital money, Ethereum was designed as a programmable platform. Its native currency is called Ether (ETH), which powers the network and pays for computational services.
Ethereum enables developers to build and run decentralized applications, commonly known as dApps, directly on its blockchain. These applications range from digital art marketplaces to lending platforms. The network uses smart contracts, which are self-executing agreements coded in software. Users pay small fees, called gas fees, in Ether to process transactions and run these programs on the network.
Most people buy Ethereum on a major exchange. Binance has the lowest fees and the widest selection — here's the quick version:
Bitcoin was created mainly as a digital currency and store of value. Ethereum is a broader computing platform that supports programmable applications and smart contracts, with Ether serving as the currency to fuel those operations.
Smart contracts are automated agreements written in code that execute when specific conditions are met. They run on the Ethereum blockchain without requiring intermediaries like banks or lawyers to enforce the terms.
Gas refers to the fee required to perform any action on the Ethereum network, such as sending funds or interacting with an application. It compensates the network participants who process and validate transactions, and the amount varies based on network demand.