What is Ethereum (ETH)? - Complete Cryptocurrency Guide
Ethereum (ETH) is the second-largest cryptocurrency and the leading platform for smart contracts and decentralized applications (dApps). Created in 2015, Ethereum enables programmable money and dApps, making it widely accepted at Melondex for deposits, withdrawals, and gaming. Our partnerships with Coinbase and Blockchain.com make Ethereum transactions seamless. Learn more about blockchain technology and how to buy crypto on site.
What is Ethereum?
Ethereum is a decentralized blockchain platform that enables smart contracts and dApps. Unlike Bitcoin (primarily a currency), Ethereum is a programmable blockchain.
Key Characteristics:
- Smart Contracts: Self-executing contracts with code
- dApps: Decentralized applications on blockchain
- Ethereum Virtual Machine (EVM): Runtime for smart contracts
- Native Currency: ETH pays for transactions and services
Brief History
- 2013: Vitalik Buterin published Ethereum whitepaper
- 2015: Ethereum mainnet launched
- 2022: The Merge - transitioned from Proof of Work to Proof of Stake
- Present: Largest smart contract platform by ecosystem size
How Ethereum Works
Blockchain Architecture:
- Blocks contain transactions and smart contract code
- Block time: ~12 seconds (after The Merge)
- Gas fees paid in ETH
- Network secured by validators (Proof of Stake)
Smart Contracts:
- Code stored on blockchain
- Executes automatically when conditions met
- Immutable once deployed
- Used for DeFi, NFTs, gaming, tokens
Proof of Stake (PoS):
- Energy-efficient (vs Proof of Work)
- Validators stake ETH to secure network
- Staking rewards available
- Better scalability
Key Features
- Smart Contract Platform: Largest ecosystem
- dApps: DeFi, NFTs, gaming, social platforms
- Energy Efficient: PoS uses much less energy
- Extensive Ecosystem: Developer tools, wallets, exchanges
Using Ethereum at Melondex
Depositing:
- Log into Melondex account
- Navigate to wallet → Deposit
- Select Ethereum (ETH)
- Copy deposit address
- Send ETH from your wallet
- Wait for confirmation (~12-15 seconds)
Withdrawing:
- Log into Melondex account
- Navigate to wallet → Withdraw
- Select Ethereum (ETH)
- Paste withdrawal address (starts with 0x)
- Enter amount and confirm
Benefits:
- Widely accepted (second to Bitcoin)
- Secure blockchain transactions
- Fast confirmations
- Established track record
Ethereum vs Other Cryptocurrencies
Ethereum vs Bitcoin:
- Ethereum: Smart contracts, programmable, faster
- Bitcoin: Digital gold, simpler, more established
Ethereum vs TRON:
- Ethereum: Larger ecosystem, more dApps, higher security
- TRON: Faster transactions, much lower fees
Gas Fees
Understanding Gas:
- Unit of computational work
- Paid in ETH
- Varies by transaction complexity
- Network congestion affects prices
Fee Structure:
- Base fee (burned)
- Priority fee (to validators)
- Dynamic pricing (EIP-1559)
Related Guides
- What is Bitcoin (BTC)?: Compare with Bitcoin
- What is the Blockchain?: Understand blockchain technology
- What is TRON (TRX)?: Compare with TRON
- What is Tether (USDT)?: Learn about stablecoins
- What is a Cryptocurrency Exchange?: Learn about exchanges
- How to Buy Crypto on Site: Buy cryptocurrency directly on platform
- How to Buy Crypto with Card: Purchase crypto with card
- Coinbase Partnership: Learn about our cryptocurrency partnership
- Blockchain.com Partnership: Discover our crypto wallet partnership
- Is Crypto Gambling Safe?: Complete security guide
- What is the Blockchain?: Understand blockchain technology
- What is a Cryptocurrency Exchange?: Learn about exchanges
Conclusion
Ethereum is the leading smart contract platform with the largest dApp ecosystem. With secure transactions and fast confirmations, ETH is an excellent choice for deposits, gaming, and withdrawals at Melondex.
