Ethereum is the world’s largest programmable blockchain and the second-largest cryptocurrency by market capitalisation. Created by Vitalik Buterin and launched in 2015, Ethereum introduced the revolutionary concept of smart contracts — self-executing code on a blockchain — enabling developers to build decentralised applications (dApps) rather than just transfer value. This transformed blockchain from a simple payment network into a global, decentralised computing platform.
Ether (ETH) is Ethereum’s native cryptocurrency, used to pay “gas fees” for every transaction and smart contract execution on the network. In September 2022, Ethereum completed “The Merge” — transitioning from energy-intensive Proof-of-Work mining to Proof-of-Stake validation, reducing energy consumption by ~99.95%. ETH stakers now secure the network and earn rewards, while EIP-1559 (2021) introduced a fee-burning mechanism that can make ETH deflationary during high usage periods.
Ethereum’s ecosystem dominates Web3: it hosts the majority of DeFi protocols ($40B+ TVL), NFT collections, DAOs, and Layer 2 scaling networks (Arbitrum, Optimism, Base). Over 4,000 active developers build on Ethereum monthly — more than any other blockchain. This “network effect” makes Ethereum’s position extremely difficult to challenge despite higher fees compared to newer blockchains.
Example: A developer launches a decentralised lending protocol on Ethereum. Users deposit ETH as collateral, borrow USDC stablecoins, pay interest in real-time via smart contract, and earn yield — all without any bank or intermediary, operating 24/7 globally with code as the only arbiter.
Learn more: Ethereum.org — What Is Ethereum?
