Ethereum (ETH) Ethereum
Ethereum is the second-largest cryptocurrency by market capitalization, launched in 2015. More than just a digital currency, Ethereum is a programmable blockchain platform that enables smart contracts and decentralized applications (dApps).
Key Facts
- • Launched in 2015 by Vitalik Buterin and other co-founders
- • Introduced smart contracts — self-executing contracts with terms written into code
- • Transitioned from Proof-of-Work (PoW) to Proof-of-Stake (PoS) in 2022, reducing energy usage by ~99.95%
- • ETH is used as "gas" to pay for transactions and smart contract execution on the network
- • Largest platform for decentralized finance (DeFi) and non-fungible tokens (NFTs)
- • Annual issuance of ETH is variable, unlike Bitcoin fixed supply
Related Trading Concepts
Blockchain
A decentralized, distributed digital ledger that records transactions across many computers. Each "block" contains transaction data, and blocks are linked chronologically in a "chain". Blockchains are the technology underneath most cryptocurrencies.
Market Cap
Market Capitalization: the total value of a company's outstanding shares, calculated as stock price multiplied by number of shares outstanding. It classifies companies into small-cap, mid-cap, and large-cap categories.
Wallet
A tool (software or hardware) that stores your cryptocurrency private keys, allowing you to send, receive, and manage your digital assets. Wallets don't actually store your crypto — they store the keys needed to access it on the blockchain.
Smart Contract
A self-executing computer program stored on a blockchain. Smart contracts automatically enforce the terms of an agreement when predetermined conditions are met, without requiring intermediaries.
Gas Fee
A transaction fee paid to blockchain network validators (miners or stakers) to process and validate your transaction. Gas fees increase when the network is busy.
Stablecoin
A cryptocurrency designed to maintain a stable value relative to a fiat currency like the US Dollar. Most stablecoins aim to keep a 1:1 peg with their target currency.