What is Ethereum? How does it work?

Ethereum is a blockchain-based platform that allows developers to build decentralized applications. dApps are the applications that are not run by a centralized authority. ETH is Ethereum's native cryptocurrency, which fuels the network and is used to pay for the transaction fees for any executed transaction on the Ethereum network. Additionally, Ether is also used to buy gas, which is used to pay for the computational cost of the transactions made on the Ethereum network.

To deploy any contract on Ethereum, a user needs a gas for which he pays in Ether. Therefore, Ether can be used to build decentralized applications, to build smart contracts, and to make peer to peer payments.

Ethereum network can also create smart contracts, which is a single computer program that facilitates the exchange of any valuable asset, including money, property, shares, or any other digital asset between the two parties. The smart contract consists of the terms and conditions that are mutually agreed upon by the two parties. The unique feature of smart contracts is that it cannot be altered once it is executed, and the transaction done on the top of the smart contract is permanent, or we can say it is immutable. The verification process of the smart contracts is done by anonymous parties of the Ethereum network without any involvement of the centralized authority.

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