Lesson 08 11 min read

Ethereum & Smart Contracts

What makes Ethereum different from Bitcoin and why programmable money matters.

Progress: 8 of 15

What is Ethereum?

Ethereum is the second-largest cryptocurrency. While Bitcoin is primarily digital money, Ethereum is a powerful platform that lets developers build applications on blockchain.

Bitcoin vs Ethereum

Bitcoin
  • Digital gold / Store of value
  • Fixed supply of 21 million
  • Simple transactions
Ethereum
  • Programmable blockchain
  • Supports smart contracts
  • Powers DeFi, NFTs, and dApps

What are Smart Contracts?

A smart contract is like a vending machine for agreements.

You put money in → the rules (written in code) automatically execute the agreement. No middleman, no trust needed — everything is transparent on the blockchain.

Why Ethereum Matters in 2026

💰

DeFi (Decentralized Finance)

Lending, borrowing, and earning interest without banks.

🖼️

NFTs & Digital Ownership

Proves unique ownership of digital items.

📱

Decentralized Apps (dApps)

Apps that run without any single company controlling them.

Key Takeaway

Bitcoin is digital money. Ethereum is programmable money. Smart contracts allow complex agreements to run automatically and transparently — opening up new possibilities in finance and beyond.

Quick Summary

  • Ethereum = programmable blockchain
  • Smart contracts = self-executing code
  • Powers DeFi, NFTs, and dApps
  • More flexible than Bitcoin
Previous
How to Buy Crypto Safely
Next: Altcoins & Other Cryptocurrencies