Vitalik Buterin says he never sold Ethereum for profit, kept ETH since 2018

Ethereum is an open-source decentralized blockchain with smart contract functionality. Serving as the core network for the cryptocurrency Ether (ETH), it is the second largest cryptocurrency and the largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.

Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language that helps users create smart contracts that execute automatically. A smart contract is basically a code that can be verified and allows transactions between users.

Staking is a process where investors grow their portfolios by locking up assets for a specified duration instead of selling them. It is used by most blockchains, especially those that use the Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive to pledge their tokens. For most long-term cryptocurrency holders, staking is a strategy to earn passive income from your assets by putting them to work in return for generating rewards.

Ethereum switched from a Proof-of-Work (PoW) mechanism to a Proof-of-Stake (PoS) mechanism in an event called “The Merge”. The transformation came as the network wanted to achieve more security, reduce energy consumption by 99.95% and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are fewer barriers to entry for miners given the reduced energy requirements.