Ethereum (ETH)
A decentralized blockchain platform that pioneered smart contracts, enabling programmable money and decentralized applications.
What is Ethereum?
Ethereum is a blockchain network, launched in 2015 by Vitalik Buterin and co-founders, that pioneered the smart contract platform. With Ether (ETH) as its native cryptocurrency, Ethereum serves as the world’s settlement layer, acting as critical financial infrastructure akin to Google’s role in information technology. It powers decentralized applications (dApps), decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), as well as real-world assets(RWAs). As the second-largest digital asset by market cap, ETH facilitates transactions, staking, and yield generation. Its consensus algorithm was transformed from PoW to PoS in 2022 to enhance scalability, energy efficiency, and throughput.
Over $165 billion in stablecoins is currently on the Ethereum network underscoring its role in liquidity and DeFi ecosystems.
Related Terms
Fast Payment Systems
Instant electronic fund transfer systems operating 24/7 for retail transactions.
Smart Contracts for Data Exchange
Self-executing contracts for automated data asset transactions.
DLT
Distributed Ledger Technology - a decentralized digital system for recording transactions across multiple computers, ensuring security and immutability.
Fiat
Government-issued currency not backed by a physical commodity, used as legal tender in digital asset trading.
Ethereum Foundation
A non-profit organization dedicated to supporting the development and ecosystem of the Ethereum blockchain without controlling it.
Consensys and Joseph Lubin
Consensys is a blockchain software studio founded by Ethereum co-founder Joseph Lubin, building enterprise tools and advocating for decentralized tech.