About Ethereum

Ethereum is a decentralized and open-source blockchain system that features smart contract functionality. It is the second-largest cryptocurrency platform in terms of market capitalization. Programmer Vitalik Buterin proposed Ethereum towards the end of 2013, and in 2014, it was crowdfunded for development. The network was launched on July 30, 2015.

Ether (ETH) is the native cryptocurrency of the Ethereum system. You can use it to pay for transactions and computational services on the Ethereum network. Ethereum, on the other hand, is the blockchain platform itself that allows you to build decentralized applications and smart contracts.

Can I mine Ethereum?

Yes, you can mine Ethereum through proof-of-work (PoW) model, although it's transitioning to a proof-of-stake (PoS) model with the Ethereum 2.0 upgrade.

What is proof of stake (PoS)?

Proof of stake is a consensus mechanism where validators are chosen to create new blocks and confirm transactions based on the number of tokens they hold and are willing to stake as collateral.

What are Ethereum Improvement Proposals (EIPs)?

Ethereum Improvement Proposals (EIPs) propose new features, standards, or processes for the Ethereum network. They are critical for Ethereum's development and evolution as they provide a structured way for developers and the community to discuss, review, and implement changes.

What is Ethereum 2.0?

Ethereum 2.0, also known as Eth2 or Serenity, is an upgrade to the Ethereum blockchain. The upgrade aims to enhance the speed, efficiency, and scalability of the Ethereum network.

Can I earn rewards by staking ETH?

Yes, with Ethereum 2.0, you can earn rewards by staking your ETH to help secure the network. Validators who stake ETH and participate in consensus earn additional ETH.

How does Ethereum handle security and scaling issues?

Ethereum secures the network using cryptographic techniques and decentralized consensus mechanisms. Additionally, its transition to PoS in Ethereum 2.0 will enhance security further. It also addresses scaling issues by implementing shard chains and transitioning to a proof-of-stake consensus mechanism. Layer 2 solutions like rollups also help to improve scalability.

What are ERC-20 tokens?

ERC-20 is a standard for creating fungible tokens on the Ethereum blockchain. These tokens are compatible with the Ethereum network and are useful in various applications and exchanges.

What are gas fees?

Gas fees are fees paid to miners for processing transactions and executing smart contracts on the Ethereum network

How can I buy Ethereum?

You can buy Ethereum from cryptocurrency exchanges, P2P platforms, Crypto ATMS, or DEXs. Here is a step-by-step guide to buying Ethereum in Canada.