What is Ethereum (ETH)? A Complete Guide for Beginners [Updated for 2025]
Basic information about Ethereum (ETH)
*This video is in English, but you can understand the content by turning on subtitles.
What is Ethereum? A simple overview and features
Ethereum is the second most well-known virtual currency after Bitcoin. It is particularly characterized by its smart contract function, which was designed as a platform that can automatically execute contracts and applications in addition to traditional currency functions.
Ethereum is used in a wide range of fields, including finance, application development, and NFT, greatly expanding the potential of blockchain. Automated contract management using smart contracts provides high reliability and transparency, overcoming the weaknesses of traditional centralized systems.
Ethereum issuance and supply
Ethereum does not have a set issuance limit, so the supply continues to increase periodically. However, due to the ETH burn system, the market supply is prevented from increasing too much. This is expected to stabilize and increase the price in the future.
The technical structure of Ethereum
What is Blockchain?
Blockchain is a mechanism for decentralized management of transaction records, enabling safe and transparent transactions without a central administrator. Ethereum can execute smart contracts on this blockchain, enabling automated contract management.
Ethereum's unique technology "Smart Contract"
A smart contract is a mechanism that automatically executes a contract when conditions are met. This enables a wide range of uses, including finance (DeFi) and NFT issuance. In Ethereum, smart contracts simplify complex processes that were previously done manually, such as financial transactions and asset management.
Ethereum Development Team and Community
Ethereum's main developer is Vitalik Buterin, and it is actively developed by the Ethereum Foundation. The community is also very large, with engineers and investors from all over the world participating and actively exchanging opinions. Ethereum improvement proposals (EIPs) are transparently discussed and regularly updated.
Ethereum Use Cases and Future Prospects
Specific use cases of Ethereum
Ethereum is used for the following purposes:
- Payment with virtual currency
- Decentralized Finance (DeFi) Services
- NFT Marketplace
- Games and Metaverse Platforms
- Development of decentralized applications (DApps)
Future potential and outlook
Ethereum is expected to continue to grow as the foundation for DeFi, NFT, and Web 3.0, and many companies are adopting it. In particular, with the arrival of the Web 3.0 era, the demand for Ethereum will continue to increase.
Comparison of Ethereum with Competitor Currencies
Ethereum has advantages over other smart contract blockchains (e.g. Solana, Cardano) in terms of the size of its community, the number of applications, and stability. However, there are issues with processing speed and fees, but the introduction of Ethereum 2.0 is expected to improve these issues.
Risks and Cautions for Ethereum
- Prices fluctuate greatly and depending on market trends, you may incur significant losses.
- Be careful of fraud and hacking. Security measures such as wallet management are essential.
- Legal regulations may become stricter in the future. Please pay attention to regulatory trends in each country.
What experts say about Ethereum
Many experts have a positive view of Ethereum. It is predicted that demand for Ethereum will continue to grow, especially as the DeFi and NFT markets grow. However, improvements in processing performance and reductions in fees are considered future challenges.
Latest Ethereum News
Recently, the transition to Ethereum 2.0 has progressed, and the switch to PoS (Proof of Stake) is expected to improve processing speed and reduce fees. In addition, partnerships with major companies and the entry of new projects are occurring one after another, which is also affecting the price.
Ethereum Roadmap
Ethereum's main roadmap is to fully implement Ethereum 2025 after 2.0, which is expected to significantly improve the scalability and energy efficiency of the network.
Ethereum Frequently Asked Questions (FAQs)
- How to buy Ethereum? It can be easily purchased at cryptocurrency exchanges (Binance, Coinbase, Coincheck, etc.).
- How to store ETH? There are software wallets such as MetaMask and Trust Wallet, and hardware wallets such as Ledger and Trezor.
- Is Ethereum secure? It is relatively safe if sufficient security measures are taken, but risk management is always important.
Links
*This article is for informational purposes only and is not a recommendation to invest. Investment decisions are at your own risk. Please be sure to check the latest information on official websites or reliable sources.