What is Ethereum (ETH)?
Ethereum (ETH) is the second-largest cryptocurrency by market capitalization, known for introducing smart contracts, decentralized finance (DeFi), and decentralized applications (DApps). Since its launch in 2015 by Vitalik Buterin, Ethereum has set to revolutionize the blockchain industry by enabling decentralized applications to run on a global network of nodes. Ethereum uses Ether (ETH) as its native currency, powering transactions and smart contracts.
Ethereum’s Core Utility and Ecosystem
Ethereum’s utility lies in its ability to support smart contracts, allowing developers to build decentralized applications (DApps) across industries like finance, gaming, and supply chain. These DApps function autonomously without central authority. Ethereum is also the foundation for NFTs (non-fungible tokens), decentralized exchanges (DEXs), and other DeFi protocols, making it a core component of the decentralized internet.
Ethereum enables the execution of smart contracts, providing a trustless environment for users to transact. Gas fees, paid in ETH, ensure the network's operations remain efficient. Every transaction or smart contract interaction requires gas, making ETH a critical asset in the blockchain economy. The Ethereum blockchain has grown into a comprehensive network for decentralized apps, NFTs, and more.
Ethereum shifted from Proof-of-Work (PoW) to Proof-of-Stake (PoS) during The Merge in September 2022, cutting energy consumption by 99%. Instead of miners, the network is now secured by validators who stake ETH to confirm transactions.
Major Ethereum Upgrades
Ethereum’s evolution has been marked by a series of upgrades and each milestone on the Ethereum roadmap has introduced critical improvements to the network’s speed, efficiency, and user experience.
Frontier (2015): The official launch of the Ethereum mainnet introduced smart contracts and decentralized applications (dApps), laying the foundation for today’s thriving blockchain ecosystem.
Constantinople & Istanbul (2019): These dual Ethereum upgrades improved network efficiency and lowered gas fees, making smart contract interactions more affordable and streamlined.
London (EIP-1559) (2021): This pivotal update restructured Ethereum’s fee model and introduced the ETH burn mechanism — a deflationary feature that can reduce the circulating supply and potentially support ETH price stability over time.
The Merge (2022): Ethereum transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS), cutting energy usage by over 99% and reinforcing the network’s long-term sustainability and staking economy.
Shanghai/Capella (2023): This upgrade enabled ETH staking withdrawals, increasing flexibility for validators and encouraging broader participation in Ethereum’s PoS ecosystem.
Pectra (2025): Focused on improving staking efficiency, wallet usability, and Ethereum scalability, this upgrade represents another major step in optimizing user experience and network performance.
Fusaka (Planned for December 2025): Expected to enhance Layer-2 compatibility, data handling, and overall transaction efficiency, furthering Ethereum’s role as a scalable smart contract platform. Learn more about Ethereum's upcoming Fusaka Upgrade to know how it will affect you as a user.
Ethereum's native token, Ether (ETH), has several utilities within the Ethereum ecosystem. It is primarily used to pay transaction fees, known as gas fees, which incentivize validators to process transactions and secure the network.
ETH is available on Binance for purchase and trade. The live price of Ethereum (ETH) is updated and available in real time on Binance.
