Ethereum
Ethereum is a programmable blockchain network designed to support smart contracts and decentralised applications. Its native cryptocurrency is Ether, or ETH.
✦ Key Insight
Ethereum expanded blockchain use beyond simple value transfers by allowing developers to deploy programmable smart contracts. It supports major areas of crypto including: Decentralised exchanges Stablecoins Lending NFTs Tokenisation DAOs Layer 2 networks ETH is also used to pay network fees and participate in Ethereum's proof-of-stake system.
✕ Common Misconceptions
Calling ETH and Ethereum the same thing
Assuming Ethereum transactions are free
Sending tokens through the wrong network
Ignoring smart-contract risk
Assuming every Ethereum token is legitimate
Confusing Ethereum with its Layer 2 networks
Detailed Explanation
How It Works
Ethereum validators process transactions and help secure the network through proof of stake.
Users submit transactions that may transfer ETH or interact with smart contracts.
Every operation consumes computational resources, and users pay network fees based on the work required and network demand.
Many tokens follow Ethereum standards such as ERC-20.
FAQs
Is Ethereum a cryptocurrency?
Ethereum is the network. Ether, or ETH, is its native cryptocurrency.
Does Ethereum use mining?
No. Ethereum moved to proof of stake in 2022.