Cryptocurrencies, such as bitcoin, enable anyone to transfer money globally. Ethereum does too, but it can also run code that enables people to create apps and organizations. It’s both resilient and flexible: any computer program can run on Ethereum.

What is Ethereum?

Ethereum is a decentralized blockchain network and software development platform, powered by the cryptocurrency ether (ETH).

It's home to thousands of cryptocurrencies and applications across DeFi, NFTs, gaming, decentralized social media and stablecoins.

Ethereum is an open, public blockchain launched in July 2015 by a software developer called Vitalik Buterin and a small team of co-founders.

The idea behind Ethereum was simple. While Bitcoin let you send and receive digital cash, Ethereum would build on this with open-source programs called smart contracts.

Smart contracts let anyone create their own digital assets and decentralized applications (dapps) that run 24/7, globally. And unlike banks, corporations or other institutions, smart contracts are available to anyone with an internet connection.

Since 2015, Ethereum has grown into a thriving ecosystem of digital assets like stablecoins, non-fungible tokens (NFTs), and governance tokens, as well as a sprawling world of dapps for decentralized finance (DeFi), art and collectibles, gaming and decentralized social media.

Collectively, this ecosystem is called "web3", representing the third phase of the internet centered around ownership.

What is ether (ETH)?

Ether (ETH) is the native cryptocurrency of Ethereum.

It's a new kind of digital money you can send to anyone, anywhere in the world in seconds for as little as a few cents. But ETH is about more than just payments. It plays a vital role in keeping the Ethereum network running.

When you use Ethereum to send money, collect art or build a new dapp, you pay a small transaction fee (or gas fee) in ETH. This fee helps prevent spam and rewards the people called validators who process transactions.

These validators help secure the ethereum network through a system called staking. By locking up their ETH they're eligible to process transactions. In return, they earn ETH as a reward. This gives Ethereum its own self-sustaining economy, powered by users rather than companies.

Unlike many traditional currencies, ETH can become more scarce over time. Every time someone uses Ethereum, a small portion of ETH is burned, which permanently removes it from the supply. On busy days, more ETH is burned than created, making ETH deflationary and increasing its value over time. The more Ethereum is used, the more ETH is burned. Because of this, many people see ETH as an investment and choose to hold, stake or lend it to grow their savings.

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