Ethereum, a leading blockchain platform, has significantly impacted the world of decentralized finance (DeFi) by enabling smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily functions as a digital currency, Ethereum’s blockchain supports programmable contracts that automatically execute when predefined conditions are met. 

This capability has opened the door to a wide range of innovative applications, from decentralized exchanges to tokenized assets, revolutionizing how financial transactions and agreements are managed. 

However, Ethereum faces challenges such as scalability and high transaction fees, which have prompted the development of Ethereum 2.0—a major upgrade designed to improve efficiency and reduce costs. As Ethereum continues to evolve, it is poised to play a critical role in shaping the future of decentralized finance and beyond.