What is Ethereum, and how does it work?

Ethereum is a blockchain platform that allows developers to build and deploy decentralized applications (dApps). Unlike Bitcoin, which is mainly for digital currency, Ethereum lets people create smart contracts—self-executing agreements with the terms directly written into code. These smart contracts run on the Ethereum blockchain, ensuring they are secure and tamper-proof. Ethereum's native cryptocurrency, Ether (ETH), is used to pay for transactions and computational services on the network. Ethereum is popular because it enables innovation beyond simple financial transactions, making it a foundation for various decentralized projects.