What Is Ethereum?
Published June 2025 · Last reviewed August 2026
Ethereum is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Launched in 2015 by Vitalik Buterin and a team of co-founders, Ethereum expanded the potential of blockchain technology beyond simple value transfer.
Smart Contracts
Smart contracts are self-executing programs stored on the Ethereum blockchain. They automatically enforce agreements when predetermined conditions are met, eliminating the need for intermediaries.
The Ethereum Ecosystem
Ethereum hosts the largest ecosystem of decentralized applications, including:
- DeFi Protocols: Lending, borrowing, and trading without intermediaries.
- NFT Marketplaces: Platforms for creating and trading unique digital assets.
- DAOs: Decentralized organizations governed by token holders.
ETH as an Asset
Ether (ETH) is the native cryptocurrency of the Ethereum network. It is used to pay transaction fees (gas fees) and can be staked to help secure the network.
The Merge
In September 2022, Ethereum transitioned from Proof of Work to Proof of Stake through an upgrade called "The Merge." This reduced Ethereum's energy consumption by approximately 99.95% and enabled ETH holders to earn staking rewards.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026