Ethereum explained
If Bitcoin is digital gold, Ethereum is a global, programmable computer that anyone can deploy code to.
> Beyond payments
Ethereum launched in 2015 with a simple but radical extension of Bitcoin's idea: instead of only tracking coin balances, the network runs arbitrary code. Every node executes the same programs in the same order and agrees on the result. That's what a 'world computer' means in practice.
> Gas and the EVM
Programs run inside the Ethereum Virtual Machine (EVM). Every operation costs 'gas', paid in ETH — that's what stops infinite loops and prices scarce block space. Gas fees rise with demand, which is why L2s exist (see the next lesson).
> Why ETH has value
ETH is the fee token, the collateral for staking, and the reserve asset of most of DeFi. After the 2022 Merge, new ETH issuance dropped dramatically and a portion of every fee is burned, making ETH mildly deflationary under heavy usage.