What it is
Ethereum is a global, open-source blockchain network designed to host decentralized applications (dApps) and execute smart contracts. Unlike Bitcoin, which primarily focuses on digital currency, Ethereum aims to be a world computer capable of running any programmatic instruction. Its native cryptocurrency is Ether (ETH), which is used to pay for transaction fees and secure the network through staking.
Ethereum's ecosystem powers a vast array of decentralized finance (DeFi) protocols, non-fungible tokens (NFTs), and various other web3 applications. Developers build on Ethereum using its EVM-compatible architecture, leading to a vibrant innovation hub. Changes to the network, like the shift to Proof of Stake, often drive significant market attention and impact the broader crypto space, influencing altcoin valuations and investor sentiment.
Why it matters
Ethereum is a foundational blockchain for many crypto innovations, and understanding it is key to navigating the broader market.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice