Markets are signaling something important today. The Nasdaq 100 led the charge with a 0.84% increase, while the S&P 500 added 0.58%. Ethereum saw a bump of 1.98%, trading at $2013.86. The Dow Jones Industrial Average saw a smaller gain of 0.05%.
Today we're looking at cryptocurrencies. What is Ethereum? Ethereum is a decentralized, open-source blockchain with smart contract functionality. Think of it as a digital ledger that can not only record transactions, like Bitcoin, but also execute agreements automatically when conditions are met. These agreements are called smart contracts, and they power a wide variety of applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs).
For beginners, it is important to understand the basics of blockchains and digital assets. A blockchain is a digital record of transactions that is duplicated and distributed across a network of computers. This makes it very difficult to change or hack. Digital assets, like Ethereum, represent ownership or rights that can be transferred on a blockchain.