Why you should know this
Ethereum is not simply another version of Bitcoin. Its programmability creates different uses and different risks.
A shared platform for programs
Ethereum is a blockchain network that can run smart contracts. These are programs stored and executed under network rules.
Applications can use smart contracts for tokens, exchanges, lending, games and other coordination. The network is infrastructure; no single app represents all of Ethereum.
Ether pays for network work
Ether, or ETH, is the network’s native asset. Users generally pay transaction fees in ETH when their actions consume computation and storage.
A programmable platform creates flexibility. It also creates software risk. A contract can contain bugs, poor controls or malicious logic.
A familiar example
Angela swaps two tokens through an Ethereum application. The app provides the interface, smart contracts execute rules and ETH pays the network fee. Three layers are involved.
One limit to remember
A smart contract is not automatically smart, fair or safe. Code execution can be predictable while the code itself is flawed.
How this connects to market mastery
Technical and fundamental analysis later examine contract design, application activity, fees, governance and security.
Quick check — no money needed
Complete the map: Ethereum is the network, ETH is the native asset, and a smart contract is a ____.
If you can answer that clearly, this lesson is complete.
*Cryptocurrency and virtual asset transactions are highly volatile and irreversible, may result in significant losses, and do not guarantee returns; customers should trade only after understanding the risks involved.
