Crypto basics

What Is Ethereum and How Does It Work?

Ethereum is a programmable blockchain designed to run smart contracts and decentralized applications as well as transfer its native asset, Ether.

More than a coin

Ether (ETH) is the network's native asset, but Ethereum is also programmable infrastructure for smart contracts and applications.

Smart contracts

Smart contracts are programs executed by the network according to code-defined rules. They can manage swaps, tokens and applications without a traditional intermediary.

Gas and transaction costs

Network operations consume resources and therefore require fees. The cost can change as network activity changes.

Risks and what to research

Smart contracts, protocols and tokens built on Ethereum have their own risks. Check permissions, contracts, networks and transaction details before interacting.

FAQ

Are Ethereum and ETH the same thing?

No. Ethereum is the network and infrastructure; ETH is its native asset.

What is ETH used for?

ETH is used for network fees and as a native asset throughout the Ethereum ecosystem.

Source

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