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Ethereum is a blockchain platform designed to build decentralized applications (dApps) using smart contracts. Ether (ETH), its native cryptocurrency, is the second largest crypto by market cap. It’s used to pay for transaction fees (gas), run dApps, and execute smart contracts. Ether also plays a key role in decentralized finance (DeFi), staking, NFTs, and decentralized exchanges.
Ether can be stored in various types of cryptocurrency wallets, including hardware wallets, software wallets, and web wallets. Wallets securely store private keys, which are required to access and manage ETH.
In Ethereum’s PoW model, miners receive block rewards for validating transactions and creating new blocks. In Ethereum 2.0’s PoS model, validators earn rewards based on their staked ETH and participation in securing the network.
Ethereum’s gas fee system is based on the computational effort required for each transaction. More complex transactions require higher gas fees. Users set their own gas limits, and higher fees can lead to faster transaction processing.
The EVM is a decentralized, global computer that processes Ethereum’s smart contracts and applications. It allows code to execute on the Ethereum network securely and independently of any single computer, maintaining a consistent environment for developers.
A DAO, or decentralized autonomous organization, is an organization managed by code rather than traditional management. DAOs on Ethereum use smart contracts for governance and decision-making, allowing members to vote on proposals without intermediaries.