What is Ethereum and How does it work?
You’ve probably seen Ethereum in the news, maybe next to Bitcoin. But it’s actually quite different. Bitcoin is like digital gold mainly for storing value. Ethereum is more like a digital playground where developers can build all kinds of new things: new financial systems, digital art markets, and more. It’s the foundation for what people call “Web3.”
Its fuel is called Ether (ETH), which you use to pay for things on the network. If you want to get some, you can easily buy Ethereum on BTZO using other cryptocurrencies, no ID needed.
What exactly is Ethereum?
Let’s find out what is all behind those tech jargons:
The Platform vs The Money
This is the most important part that confuses everyone:
- Ethereum is the whole system (like the entire PlayStation network)
- ETH is the money you use within that system (like buying games or in-game currency)
When people say they’re buying Ethereum, they really mean that they’re going to buy ETH tokens. It’s like saying “I’m buying PlayStation” when you really mean that you’re buying a PlayStation game.
The Creator
The founder of Ethereum is Vitalik Buterin. He came up with this idea in 2013 due to the fact that he thought Bitcoin could do something other than making payments. He founded Ethereum in 2015, and since then, it has been exploding.
How Does This Thing Actually Work?
1. The Shared Google Doc (Blockchain)
Imagine a Google Doc that shared with thousands of people and they have open it at the same time. Every time someone makes a transaction, a record added to the doc. Because everyone has a copy, nobody can cheat or change what’s already written. That’s basically what a blockchain is.
2. Smart Contracts (The Magic Sauce)
This is what makes Ethereum special. Smart contracts are like digital vending machines:
- You want a soda? The rule is simple: IF you put in $2, THEN you get a soda
- No shopkeeper needed – the machine handles everything automatically
On Ethereum, these “vending machines” can handle much more complex things like loans, insurance, or even entire games.
3. Gas Fees (The Cost of Using the Network)
To use Ethereum, you have to pay small fees called “gas.” Why? Because you’re paying the computers that keep the network running. It’s like paying for electricity to run that giant computer we talked about.
What Can You Actually Do With Ethereum?
Real Stuff People Use Right Now:
DeFi (Decentralized Finance)
- Lend your crypto and earn interest (like being the bank)
- Borrow money using your crypto as collateral
- All without paperwork or bank hours
NFTs (Digital Ownership)
- Those expensive digital artworks and collectibles? Most are on Ethereum
- The blockchain acts as a certificate of authenticity
dApps (Unstoppable Apps)
- Social media that can’t censor you
- Games where you truly own your items
- Marketplaces without middlemen
Why Ethereum Matters Now More Than Ever
Ethereum just got a massive upgrade called “The Merge” that fixed its biggest problems:
- It’s Way Greener
- Old system used as much energy as a small country
- New system uses 99.9% less energy
- It’s Getting Faster & Cheaper
- Can handle more users without slowing down
- Fees are becoming more reasonable
- It’s Still #1
- Most developers choose Ethereum
- Most apps are built on it
- It’s like the Mumbai of crypto – everyone wants to be there
How to Get Started with Ethereum on BTZO
Ready to try it out? Here’s the simple way to get ETH on BTZO:
- Sign Up – Create your BTZO account (takes 2 minutes)
- Add Money – Wire your digital wallet and add USDT by copy pasting the QR Link
- Buy ETH – Use the “Convert” feature for instant purchase
- You’re Done! – ETH appears in your wallet
Start with whatever amount you’re comfortable with – even ₹500 to test the waters.
The Bottom Line
Ethereum isn’t just another cryptocurrency. It’s a new way of building apps that are open, fair, and can’t be controlled by any single company. It’s the foundation for the next generation of the internet.
While the ethereum price will go up and down, the technology itself is here to stay. Understanding it now puts you ahead of the curve.
When you’re ready to explore, BTZO makes it safe and easy to buy Ethereum and start your Web3 journey. Whether you want to invest, build, or just understand the future, getting some ETH is your first step.