How does Ethereum work?

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Ethereum (ETH) is best understood as a decentralized global computer rather than just a digital currency. Where Bitcoin mostly tracks who owns what, Ethereum runs actual code — smart contracts — that anyone can deploy and interact with, no permission or middleman needed. Here's how it works, layer by layer: 1. Accounts & the ledger The network's state is a record of every account (each with an ETH balance) plus every smart contract's storage. Miners/validators agree on this state and append it in blocks. 2. Transactions and gas To do anything — send ETH, call a contract, mint an NFT — you pay gas, a fee priced in ETH that compensates validators and prevents network spam. Heavier operations (complex contract calls) cost more gas than simple transfers. 3. Smart contracts Programs that live on-chain and execute deterministically on every node. Once deployed they run exactly as written and can't be taken down or changed by a central party — which is the core of "code is law." 4. The Ethereum Virtual Machine (EVM) The runtime that actually executes smart contracts. It's the shared, sandboxed "operating system" every node runs, which is why EVM compatibility has become an industry standard for other chains. 5. Proof of Stake (since Sept 2022) Validators lock up (stake) 32 ETH to propose and attest blocks; misbehaving validators get slashed. This cut the network's energy use by over 99% versus the old proof-of-work mining. 6. Ether (ETH) is the fuel and the stake: paid as gas, staked for security, and the base asset of the entire ecosystem. Current snapshot — ETH at $2,416, market cap ~$291.6B (rank #2), 24h volume ~$13.6B, up +0.1% in 24h. Sentiment is broadly positive at 93% up (CoinGecko). Where it trades: live on several major spot exchanges, all with 0.10%/0.10% base fees: - Binance - OKX - Bybit This is general background on how the technology functions, not investment advice. Note the Ethereum card above shows the 7-day price action.