> For the complete documentation index, see [llms.txt](https://dagora.gitbook.io/guides/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dagora.gitbook.io/guides/intermediate/tutorials-and-guides/ethereum.md).

# Ethereum

Ethereum is an open-source, programmable, decentralized platform built on blockchain technology. Compared to Bitcoin, Ethereum allows for scripting languages that have allowed for application development. 

The decentralized blockchain platform establishes a peer-to-peer network that securely executes and verifies application code, called [smart contracts](/guides/intermediate/tutorials-and-guides/ethereum/lessons/smart-contracts.md). Smart contracts allow participants to transact with each other without a trusted central authority. 

### Ethereum's Goal

Ethereum's goal is to give everyone access to digital money and financial services, banking for everyone. Utilizing a peer-to-peer blockchain network to skip the need for intermediaries, allows Ethereum to be censorship-resistant. Meaning it's near impossible for an entity to stop you from using the service. It is creating a level playing field for everyone involved. Ethereum is constantly being upgraded to suit users' needs if you wish to learn more follow the [Ethereum road map](https://ethereum.org/en/upgrades/).

### How Ethereum Works

Ethereum works on a blockchain consensus that provides security and transparency, currently using the [PoW](/guides/beginner/lessons/readme/pow-chains.md) chain to validate transactions. Soon, Ethereum will hard fork into a [PoS](/guides/beginner/lessons/readme/pos-chains.md) chain to validate transactions. Think of the Ethereum blockchain as a highway and the Ether transactions as vehicles driving on the highway.

### Ether: Ethereum's Native Currency

| Unit       | Wei Value | Amount of Wei             |
| ---------- | --------- | ------------------------- |
| Wei        | 1 wei     | 1                         |
| Kwei       | 10^3 wei  | 1,000                     |
| Mwei       | 10^6 wei  | 1,000,000                 |
| Gwei       | 10^9 wei  | 1,000,000,000             |
| Microether | 10^12 wei | 1,000,000,000,000         |
| Milliether | 10^15 wei | 1,000,000,000,000,000     |
| Ether      | 10^18 wei | 1,000,000,000,000,000,000 |

To transact on the Ethereum blockchain you will need to pay a small fee to the validators of the network, known as Gas Fees. Gas fees are measured in a smaller unit of Ether; Gwei. Ether would be the base which can be broken down into 18 decimal places, see the table above.