Ethereum is a decentralized global software platform powered by blockchain technology, known for its native cryptocurrency, ether (ETH). It was launched in 2015 by Vitalik Buterin and Joe Lubin, founder of blockchain software company ConsenSys. Ethereum’s token is designed to pay for work done supporting the blockchain, but participants can also use it to pay for tangible goods and services if accepted.

Ethereum uses a proof-of-stake transaction validation mechanism, which allows users to validate transactions and mint new ETH based on their ether holdings. This transition to the proof-of-stake protocol was part of a significant upgrade to the Ethereum platform. The first layer is the execution layer, where transactions and validations occur, while the second layer is the consensus layer, where attestations and the consensus chain are maintained.

Ethereum’s history is marked by a historic split, with Ethereum Classic (ETC) being permanently split to become Ethereum Classic (ETC). The Dencun Upgrade introduced proto-danksharding to the Ethereum mainchain, paving the way for future upgrades to the Ethereum blockchain.

Ethereum operates on a distributed ledger called a blockchain, where information is stored in blocks, each containing encoded data from the block before it and new information. Each block is created with new ether tokens awarded to the validator for the work required to validate the information in one block and propose a new one.

Ethereum is often compared to Bitcoin, but the two cryptocurrencies have important differences. Ethereum is described as “the world’s programmable blockchain,” while Bitcoin was created only to support bitcoin as a payment method.