1. What is Ethereum, and why is it a big deal in the crypto space?
Ethereum is a decentralized platform for smart contracts. It that has already changed the entire blockchain world.The buzz surrounding it is caused by the possibility for developers to build and launch their personalized decentralized applications (dApps) on Ethereum.
2. How does Ethereum achieve consensus?
Ethereum uses the Proof-of-Stake (PoS) consensus mechanism. It switched from PoW (Proof-of-Work) to PoS during the Merge in fall 2022.
3. What's the deal with Ether (ETH) tokens?
ETH is the native token of the Ethereum network. It fuels transactions running and covers the bill making smart contracts happen. In short, ETH is like the turbocharged crypto fuel keeping the whole ecosystem operating smoothly!
4. Can I trade ETH on any exchange?
Absolutely! Ethereum is a star of the crypto world, being one of the most widely listed coins. It's accesible on almost all major exchanges. You can swap it for fiat or altcoins and start trading.
5. Why do some call Ethereum "Gas"?
In the Ethereum ecosystem, "Gas" means the unit for measuring transaction fees. Think of it as the little fee you toss in for your smart contracts to run smoothly and your tokens to move.
6. Is Ethereum scalable?
Ethereum's once had an issue with scalability because of the PoW mechanism. But when Ethereum 2.0 was fully implemented, its scalability leveled up, handling more transactions per second.
7. Can I earn passive income with Ethereum?
Totally! In Ethereum 2.0's PoS consensus, you can stake ETH and score rewards for being a transaction validator. Kind of a crypto saving account.
8. What is the role of dApps on Ethereum?
dApps, or decentralized applications, are the apps that live on the Ethereum blockchain. They offer all sorts of stuff like decentralized finance (DeFi), gaming, and places to trade NFTs.
9. How do Ethereum's smart contracts work?
Ethereum's smart contracts work by being self-executing encoded agreements and contain specific conditions. As soon as those conditions are met, the contract executes and runs automatically — no need for middlemen.
10. Is Ethereum secure against hacks?
Ethereum might be a battle-hardened platform, but even its smart contracts can be exploited if not coded flawlessly. That's why auditing, bug bounties, and sticking to secure development methods are very important.