Glossary
Ethereum
Ethereum is a decentralized, open-source blockchain platform that runs programmable applications through smart contracts, with its native cryptocurrency called Ether (ETH). It extends the idea of a blockchain beyond simple payments into a shared, global computing environment.
The close-up. Ethereum is a public blockchain designed to do more than record transfers of value. Its defining feature is the smart contract — code that lives on the network and executes automatically when its conditions are met, without an intermediary. These contracts run on a shared virtual machine, and every participating computer processes the same instructions to reach agreement on the outcome. The network's native asset, Ether, is used to pay for computation and storage; the fee attached to each operation is commonly called gas. Ether can also be held and transferred like other cryptocurrencies.
The wide shot. Where a payments-focused blockchain mainly answers "who owns what," Ethereum aims to be a general-purpose settlement layer for applications. Developers build on it directly or through additional networks that extend its capacity, and its programmable design underpins much of decentralized finance, non-fungible tokens, and other on-chain services. Ethereum uses a proof-of-stake consensus model, in which participants help secure the network by committing Ether rather than by expending large amounts of energy.
Ethereum is one of the most widely referenced platforms in the crypto ecosystem, but like any technology it carries technical and market risks. This entry is informational only and not financial advice — always do your own research.