Ethereum is a blockchain network invented by Vitalik Buterin in 2015. Ethereum is one of the most popular cryptocurrencies and ranks #2 in total market capitalization.
Unlike Bitcoin which only stores transaction hash (sender's/receiver's address, amount), Ethereum allows users to store transaction hash along with any other form of data opening a world of possibilities.
In simple words, you can think of Ethereum as a DIY platform to build and run decentralized applications(D-Apps). Any kind of transaction in the Ethereum network uses Ether- the native currency of the Ethereum blockchain.
Ethereum works on a Proof Of Stake consensus algorithm.
POS is a consensus algorithm that allows a miner to mine blocks.
Miners also called "validators" need to lock in (stake) 32 Ethers in order to be eligible to mine.
Once you stake, You will be part of a lottery where the winner gets a chance to validate the transaction and earn rewards.
Smart Contracts are self-executing if-else statements that work automatically without any human interference.
One very simple use case of smart contracts is while placing trades. Assume the following function: "Buy BTC IF it comes below $55,000 ELSE don't".
Here the smart contracts automatically follow this function and react accordingly. Some features of smart contracts are:
Once created, smart contracts cannot be altered as they are deployed in the blockchain.
This results in extreme security
There are no middlemen involved and smart contracts work solely on the basis of the code written in them.
Smart contracts prevent misuse of trust as they are transparent contracts visible to all.
Read More About Smart Contracts Here:
A gas fee is a fee required to successfully execute a smart contract.
It's the fee paid by users to compensate validators for the computing energy required to process and validate transactions.
Every transaction on the Ethereum blockchain has a GAS fee attached to it.
Transaction Fee = Gas x GWEI where
1 GWEI= 0.000000001 ETH
Read More About GAS Fees Here:
