What is Ethereum (ETH)?
If Bitcoin is digital gold, Ethereum is a global decentralized computer.
It was launched in 2015 by Vitalik Buterin to make blockchains programmable.
Ether (ETH) is the native cryptocurrency used to pay network fees (gas) and secure the network through Proof of Stake.
Why It Matters in Web3 & Crypto
Ethereum powers the vast majority of decentralized finance (DeFi), NFTs, and Web3 applications operating today.
Key Mechanics & Best Practices
- 1Use ETH to pay transaction gas fees when using Ethereum apps and sending tokens.
- 2Stake ETH to earn annual validator rewards and secure the network.
- 3Use Layer 2 networks like Arbitrum or Base for cheaper and faster Ethereum transactions.
Practical Scenario
When you buy a digital item or swap tokens on an Ethereum-based app, you pay a small fee in ETH to validators for processing your request.
SECURITY & RISK TIP
During busy market hours, mainnet Ethereum gas fees can spike. Using Layer 2 scaling networks can reduce transaction fees by over 95%.