$ETH What Is Ethereum (ETH)?

Ethereum is a decentralized, open-source blockchain platform designed to support smart contracts and decentralized applications (dApps). Launched in 2015, Ethereum expanded the use of blockchain technology beyond simple peer-to-peer payments by enabling programmable transactions.

The native cryptocurrency of the Ethereum network is Ether (ETH). ETH is used to pay transaction fees, interact with applications on the network, and help secure the blockchain through staking.

How Ethereum Works

Ethereum operates as a distributed network of computers (nodes) that collectively maintain a shared ledger. Smart contracts—self-executing programs stored on the blockchain—allow applications to run without intermediaries.

In 2022, Ethereum transitioned from a Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS). Under PoS, network participants known as validators stake ETH to help process transactions and secure the network.

Key Features of Ethereum

Smart Contracts

Smart contracts automatically execute predefined actions when specific conditions are met. They are the foundation of Ethereum’s decentralized ecosystem and enable trustless interactions between users.

Decentralized Applications (dApps)

Ethereum hosts thousands of dApps across various sectors, including decentralized finance (DeFi), NFTs, gaming, and digital identity. These applications operate without centralized control.

Ether (ETH) as a Utility Asset

ETH serves multiple roles within the Ethereum ecosystem:

  • Paying gas fees for transactions and smart contract execution

  • Staking to support network security

  • Acting as a widely traded digital asset in the crypto market

Ethereum and Network Upgrades

Ethereum is continuously upgraded to improve performance, security, and scalability. Recent and ongoing upgrades focus on:

  • Reducing transaction costs

  • Increasing transaction throughput

  • Improving user experience

In addition, Layer-2 scaling solutions help process transactions off the main blockchain while still benefiting from Ethereum’s security.

Ethereum in the Crypto Market

Ethereum is one of the most actively traded cryptocurrencies and plays a major role in the broader digital asset market. Due to its extensive ecosystem and high liquidity, ETH is commonly used as:

  • A base trading pair

  • A reference asset for altcoin market trends

  • A component of various crypto-related financial products

Considerations for ETH Trading

When learning about or trading ETH, users often consider factors such as:

  • Network upgrades and technical developments

  • Changes in ETH supply dynamics

  • On-chain activity and ecosystem growth

  • Overall cryptocurrency market conditions

Cryptocurrency markets are inherently volatile, and prices may fluctuate significantly over short periods.

Summary

Ethereum is a foundational blockchain platform that enables smart contracts and decentralized applications. With continuous development and a broad ecosystem, ETH remains a key digital asset for understanding blockchain technology and cryptocurrency markets.