Ethereum is an open network and BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. that can run applications. Bitcoin was designed to move value, but Ethereum can also run smart contractsSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met., programs that run automatically according to preset rules. The network's currency is called Ether (ETH)Ether (ETH)The currency of the Ethereum network, used to pay network fees, as a stake under proof of stake and to send value between people. (ETH).
A short history
- 2013: Vitalik Buterin set out the idea in a WhitepaperWhitepaperA document in which the creators of a cryptocurrency or project describe how it works, what it is for and which rules apply to it. late in the year.
- 30 July 2015: The network went live.
- 15 September 2022: Ethereum switched from proof of work to proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake., cutting the network's energy use by about 99.95%.
Ether has long been the second-largest cryptocurrency by market capitalisation, after bitcoin.
What can you do on Ethereum?
Ethereum works like a shared computer that nobody owns. Anyone can put programs on it and use them. Among the things built on it:
- Tokens, such as stablecoins like USDC.
- DeFi, financial services such as lending and trading without a bank.
- NFTs, unique digital certificates of ownership.
Every action costs a network fee, calculated in gas. A new block is added every 12 seconds.
What to keep in mind
Ethereum gives developers a lot of freedom, and that comes with risk. Bugs in smart contracts have cost users large sums, and transactions can't be reversed. The price of ether swings a lot, like the prices of other cryptocurrencies.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.