Ethereum is a blockchain-based platform that allows developers to build and deploy decentralized applications (dapps). Ethereum works by using a distributed public blockchain network, which is a shared ledger that records all transactions on the Ethereum network.
For example, let’s say Alice wants to send Bob some Ether (ETH). Alice would use her Ethereum wallet to send a transaction to Bob’s Ethereum wallet. This transaction is then broadcasted to all the computers in the Ethereum network. The computers in the network then validate the transaction by using a consensus algorithm, such as Proof of Work or Proof of Stake. Once the transaction is validated, the ETH is transferred from Alice’s wallet to Bob’s wallet, and the transaction is added to the Ethereum blockchain.