Ethereum

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FAQ

What is Ethereum?

Ethereum is an open-source blockchain platform that enables developers to create decentralized applications (dApps) and smart contracts.

What is Ether (ETH)?

Ether (ETH) is the native cryptocurrency of the Ethereum network, used to pay for transaction fees and computational services.

What are smart contracts?

Smart contracts are self-executing contracts with terms written into code, running on the Ethereum blockchain.

How is Ethereum different from Bitcoin?

While Bitcoin is mainly a digital currency, Ethereum is a platform that allows for creating dApps and executing smart contracts.

What is Ethereum 2.0?

Ethereum 2.0 (Eth2) is an upgrade to the Ethereum network, aimed at improving scalability, security, and sustainability by shifting to a Proof of Stake (PoS) consensus.

What is gas in Ethereum?

Gas is a fee required to execute transactions or run smart contracts on the Ethereum network, measured in “gwei.”

What is a decentralized application (dApp)?

A dApp is an application that operates on a decentralized network, providing users with transparency and control over data.

What is Solidity?

Solidity is a programming language designed for writing smart contracts on the Ethereum blockchain.

How does Ethereum handle security?

Ethereum’s decentralized nature and consensus mechanisms make it resistant to tampering and fraud, though smart contract vulnerabilities remain a risk.

What is an Ethereum wallet?

An Ethereum wallet is a digital tool that allows users to store, send, and receive Ether and interact with the Ethereum blockchain.

What is staking in Ethereum?

Staking in Ethereum 2.0 involves locking up ETH to support network security and earn rewards.

What is the Ethereum Virtual Machine (EVM)?

The EVM is the runtime environment for smart contracts on Ethereum, ensuring each node can execute identical code.

How does Ethereum handle transactions?

Transactions on Ethereum are broadcast to the network, verified by nodes, and added to the blockchain.

What are ERC-20 tokens?

ERC-20 is a standard for creating fungible tokens on Ethereum, used widely in ICOs and dApp ecosystems.

How can I buy and store Ether?

Ether can be bought on exchanges and stored in Ethereum-compatible wallets like MetaMask, Ledger, and Trust Wallet.

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