Ethereum is a programmable blockchain launched in July 2015. Rather than only recording transfers, it runs smart contracts — code that executes exactly as written — which makes it the base layer for most decentralised finance, NFTs and layer-2 networks.
Launched
July 2015
Created by
Vitalik Buterin and co-founders
Consensus
Proof of Stake
Supply
No fixed cap
Ethereum key facts
Moved from proof-of-work to proof-of-stake in September 2022, cutting network energy use by more than 99%.
No fixed supply cap; issuance is offset by a fee-burning mechanism introduced in EIP-1559.
Validators stake 32 ETH to help secure the network and earn rewards.
Most layer-2 rollups — Arbitrum, Optimism, Base — settle their transactions back to Ethereum.
How Ethereum works
Validators lock ETH as collateral and are selected to propose and attest to blocks. Every transaction pays gas, priced in ETH; a base portion of that fee is burned rather than paid out. Smart contracts run in the Ethereum Virtual Machine, so any node can independently verify that a contract executed correctly.
What ETH is used for
Settlement layer for decentralised exchanges, lending and stablecoins
Issuance of tokens, NFTs and tokenised real-world assets
The security layer that layer-2 networks post their proofs to
Ethereum developers merged a fix on October 26 for a Glamsterdam upgrade bug that could have sent staker deposits to block builder accounts, resolving a flaw first reported two weeks earlier.
Ethereum co-founder Vitalik Buterin warned that AI-driven mathematical breakthroughs could weaken lattice-based cryptography within two years and threaten the ECDSA signatures securing Bitcoin and Ethereum wallets sooner than expected.
MetaMask began exiting Ethereum validators after a security incident diverted staking rewards. Lido says affected validators could miss payouts for up to 45 days, with no user funds at risk.
US Ethereum ETFs posted a third straight day of inflows on September 22 as BlackRock's ETHA led buying and BitMine added 27,562 ETH to its treasury, against the backdrop of a Bitcoin short squeeze.
Spot Ethereum ETFs attracted $196.9M in net inflows for the week ending September 11 — a fourth straight positive week — while Bitcoin ETFs bled $462.7M.
Major digital assets including Bitcoin, XRP, Ethereum, and Solana are currently experiencing a sharp market correction, raising questions about future recovery.
It is the base layer for programmable finance. Lending protocols, decentralised exchanges, most major stablecoins and the majority of layer-2 networks run on or settle to Ethereum, which is why demand for ETH is closely tied to activity across that ecosystem.
How is Ethereum different from Bitcoin?
Bitcoin is designed to move and store value; Ethereum is designed to run programs. Bitcoin uses proof-of-work with a fixed 21 million supply, while Ethereum uses proof-of-stake with no hard cap but an ongoing fee burn that can make supply deflationary during periods of heavy use.
What are Ethereum layer-2 networks?
Layer-2s process transactions off the main chain and post compressed proofs back to it. Users get much lower fees while still inheriting Ethereum's security. Arbitrum, Optimism and Base are the largest by activity.