In the world of cryptocurrencies, Ethereum is the second-largest cryptocurrency after Bitcoin with a market capitalization of $139.8 billion. It was made by a programmer Vitalik Buterin in 2013 with other co-founders Joseph Lubin, Charles Hoskinson, Anthony di Lorio, and Gavin wood. Ethereum has its own blockchain and it's an open-source platform with smart contract functionality.
What are smart contracts in ETH and how does it work?
A smart contract is a code or a program stored in the blockchain, it runs when required conditions are met during a transaction. It is like an automated digital contract between two parties without any intermediary involved.
Smart contract works on "if, when, then…" statements written as a code on the blockchain which runs when the conditions are met and successfully verified, the smart contracts can be anything like sending notifications, registration of name or vehicles, and release of funds. The results of these smart contracts cannot be changed and can only be seen by the parties involved.
What is the Ethereum blockchain?
Ethereum has its own blockchain on which many cryptocurrencies are built and many other Cryptocurrencies support the ERC-20 blockchain. Whenever users want to make any transaction on the eth blockchain it needs fees to complete the transaction, fees on the Ethereum blockchain are usually very high. All the transactions made on this blockchain can be checked on ethscan.com.
What is ETH 2.0 (merge)?
Eth 2.0 is not another eth coin, it is an upgraded version of the Ethereum network in which issues like high gas fees, scalability, congestion in the network, and speed of transactions have been considered to solve. Eth 2.0 also includes mechanisms like proof-of-work, proof-of-stake, and making the Ethereum network more sustainable and secure. The launch and implementation of Eth 2.0 or merge are divided into 3 parts which are expected to complete by 2023.