Ethereum is a platform powered by blockchain technology that is best known for its native cryptocurrency, called Ether, or ETH, or simply Ethereum. The distributed nature of blockchain technology is what makes the Ethereum platform secure, and that security enables ETH to accrue value.
The Ethereum platform supports Ether in addition to a network of decentralized apps, otherwise known as dApps. Smart contracts, which originated on the Ethereum platform, are a central component of how the platform operates. Many decentralized finance (DeFi) and other applications use smart contracts in conjunction with blockchain technology.
As a cryptocurrency, Ethereum is second in market value only to Bitcoin as of December 2021.
- Ethereum is a blockchain-based platform that is best known for its cryptocurrency, ETH.
- The blockchain technology that powers Ethereum enables secure digital ledgers to be publicly created and maintained.
- Bitcoin and Ethereum have many similarities but different long-term visions and limitations.
- Ethereum is transitioning to an operational protocol that offers incentives to process transactions to those who own the largest amounts of ETH.