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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.
Ethereum powers metaverse projects like Decentraland and The Sandbox, allowing users to own, create, and interact with virtual land and assets. Ethereum’s NFTs facilitate digital ownership, a cornerstone of the metaverse economy.
Gas limits control the maximum amount of gas that can be used in a transaction. Users set gas limits based on the complexity of the transaction, ensuring they don’t overspend on gas fees while enabling the network to process their request.
Ethereum transactions are stored on the blockchain, a distributed ledger that records every transaction in sequential blocks. Each transaction is publicly accessible and immutable, ensuring transparency and security.
The burn mechanism, introduced in EIP-1559, reduces Ethereum’s supply by burning a portion of gas fees in each transaction. This deflationary element may increase ETH’s scarcity, impacting its long-term value.
An Ethereum account is a unique identifier used to store, send, and receive ETH and tokens. It consists of an address and a private key, which controls the funds and allows access to the account.