What is Ethereum? A Complete Guide for 2026

币界网2026/01/30 08:16

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CoinWorld News: Ethereum is a decentralized global computing platform and the second-largest cryptocurrency by market capitalization. Unlike Bitcoin, which primarily serves as a digital currency, Ethereum supports programmable smart contracts, enabling innovative technologies such as decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs). Its native token, Ether (ETH), is used to pay transaction fees and secures the network through staking. Since transitioning to a Proof of Stake (PoS) mechanism in 2022, Ethereum's energy consumption has dropped by more than 99%, and during periods of high network load, the supply of ETH often tends to be deflationary. Although transaction costs on its base layer network can be relatively high, scaling solutions such as Layer 2 networks can significantly reduce transaction fees.

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