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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.
The London Hard Fork was an Ethereum network upgrade implemented in August 2021. It introduced EIP-1559, a major change to the fee structure, where a portion of gas fees is “burned,” reducing the total supply of ETH over time.
Ethereum enables the creation of in-game assets as NFTs, giving players ownership of digital items and the ability to trade them on secondary markets. This has led to the rise of play-to-earn games where players can earn real value through gameplay.
Ethereum employs a decentralized network of nodes and validators that independently verify transactions and ensure data integrity. This structure, combined with smart contract audits and a large developer community, enhances its security.
EIP-1559 is an Ethereum Improvement Proposal that changed the gas fee structure, making fees more predictable. It introduced a base fee that is burned, meaning some ETH is permanently removed from circulation, potentially reducing inflation.
Hard forks are significant updates to the Ethereum protocol that are not backward-compatible, meaning all participants must upgrade to the new version. Notable forks include the DAO hard fork, which created Ethereum Classic, and the London Hard Fork.