Ethereum 2025 Beginner's Guide: Working Principles, Smart Contracts, and Investment Strategies

Ethereum 2025: Revolutionary Upgrade Leads the New Era of Cryptocurrency

In 2025, Ethereum, as a pioneer in blockchain technology, continues to lead innovation in the cryptocurrency industry. Ethereum basics 2025 has undergone revolutionary changes, with its workings becoming more efficient and scalable. How does Ethereum work? It verifies and records transactions through a distributed node network, automatically executing complex business logic using smart contracts. Explaining the Ethereum blockchain, it is a decentralized global computer that provides infrastructure for decentralized applications (DApps).

Ethereum smart contracts are one of the most revolutionary features of Ethereum. These self-executing code snippets enable complex financial and commercial transactions to be safely conducted without intermediaries. By 2025, smart contract technology has matured and is widely applied in various fields such as finance, supply chain, and real estate. For example, the loan contracts of DeFi (Decentralized Finance) protocol Aave have exceeded a 24-hour trading volume of $10 billion, while the smart contracts launched on the NFT trading platform OpenSea process over 1 million transactions daily.

The Pectra upgrade is the most significant technological advancement for Ethereum in 2025. It greatly improves network performance, increasing transaction processing speed to 100,000 transactions per second, while reducing gas fees by 90%. This groundbreaking upgrade propels Ethereum ahead of many competitors in terms of scalability, paving the way for explosive growth in DeFi and Web3 applications.

Ethereum vs Bitcoin: Who Will Dominate the Cryptocurrency Market in 2025?

Ethereum vs Bitcoin 2025, the 'battle of the century' in the cryptocurrency world continues. While Bitcoin remains the cryptocurrency with the highest market value, Ethereum is far ahead in terms of utility and innovation. By 2025, there are over 10,000 decentralized applications running in the Ethereum ecosystem, while the Bitcoin network is mainly used for value storage and payments. The number of daily active addresses on Ethereum has reached 5 million, five times that of Bitcoin.
However, Bitcoin remains more widely accepted among institutional investors. By 2025, the assets under management (AUM) of Bitcoin ETF reached $50 billion, while the AUM of Ethereum ETF was only $10 billion. This indicates that the traditional financial sector still tends to view Bitcoin as 'digital gold'.

As a leading cryptocurrency exchange, Gate provides users with convenient Bitcoin and Ethereum trading services. Through Gate's Web3 wallet, users can easily connect to various DApps and experience the infinite possibilities of the Ethereum ecosystem.

Conclusion

Ethereum demonstrates strong innovation and application potential in 2025. The Pectra upgrade significantly improves network performance, and smart contracts are widely used in multiple fields. While Bitcoin still holds the advantage in market value, Ethereum has taken the lead in terms of utility. Investors can achieve substantial returns in this market full of opportunities through long-term holding, staking participation, DeFi, and other diversified strategies.

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