2025-08-16
Ethereum is a decentralized platform based on blockchain technology, which operates on the basis of smart contracts and distributed computing. Unlike Bitcoin, Ethereum not only supports cryptocurrency transactions, but also runs decentralized applications (DApps). The following explains the operating principle of Ethereum from the aspects of blockchain architecture, smart contracts, consensus mechanism, and the role of Ethereum.
The core of Ethereum is blockchain technology, which is a distributed ledger that records all transactions and operations. All data is maintained by nodes worldwide, which together form a decentralized network. Each node maintains a complete copy of the blockchain to ensure data transparency and security. New transactions and operations are packaged in blocks and added to the chain to form a chronological record.
The biggest innovation of Ethereum lies in smart contracts. Smart contracts are self-executing codes that run on the Ethereum Virtual Machine (EVM). Developers can write contracts in programming languages such as Solidity to define transaction rules or application logic. When preset conditions are met, smart contracts will automatically execute operations without third-party intervention. This mechanism makes Ethereum not only a currency network, but also supports various decentralized applications, such as decentralized finance (DeFi) and non-fungible tokens (NFT).
Ethereum initially used the Proof of Work (PoW) mechanism to verify transactions, but with the upgrade of Ethereum 2.0, it gradually transitioned to the Proof of Stake (PoS) mechanism. In PoS, validators participate in transaction verification and block generation by staking Ether (ETH). This mechanism not only improves energy efficiency, but also enhances the scalability and security of the network.
The native cryptocurrency of the Ethereum network is Ethereum (ETH). It is not only a tool for users to pay transaction fees, but also used to incentivize nodes to verify transactions. Ethereum is also the "fuel" for developers to deploy smart contracts and run decentralized applications, playing a core role in the entire Ethereum ecosystem.
Ethereum has built a decentralized global computing platform through blockchain technology, smart contracts, and proof-of-stake mechanisms. Its openness and flexibility enable developers to build a wide range of application scenarios on it, from Financial Services to digital identity authentication. Because of this unique way of operation, Ethereum has become an important innovative platform in the field of blockchain technology.
This material is for general information purposes only. It does not constitute, nor should be interpreted as, any form of solicitation, offer or recommendation of any product or service. It does not constitute investment, tax or legal advice. In no event should any news release be considered as recommendation of a particular type of digital asset.
This material may include market data prepared by HashKey Exchange or data from third party sources. While HashKey Exchange makes reasonable efforts to ensure the reliability of such third-party information, such information may have not been verified. Graphics are for reference only. We make no representation or warranty, express or implied, to the timeliness, accuracy or completeness of the information in this material. Information may become outdated, including as a result of new plans, regulations or changes in the market. In making investment decisions, investors should not solely rely on the information contained in this material. The risk of loss in trading digital assets can be substantial and is not suitable for all investors.
Any forward-looking statements in this material is subject to several conditions, uncertainties and assumptions. We undertake no obligation to update or revise any forward-looking statements.
The English version shall prevail if there is any inconsistency between the English and Chinese versions.