What is Ethereum ?
Ethereum: what the second biggest cryptocurrency is really for
Often mentioned right after Bitcoin, Ethereum is much more than just another cryptocurrency. It’s a full platform that lets developers build apps, run code, and manage contracts without a middleman. Coinstancy explains in simple terms what Ethereum is and why it matters in the crypto world.
Not just a crypto
Launched in 2015 by Vitalik Buterin, Ethereum acts like a digital currency, but its true power lies in its ability to run programs on the blockchain. These programs are called smart contracts.
Smart contracts allow developers to build decentralized applications (or dApps), like games, voting systems, or financial tools—with no need for banks or centralized companies.
Smart contracts: Ethereum’s beating heart
A smart contract is a bit of code that runs automatically when certain conditions are met. For example, “if Alice sends 1 ETH to Bob, then Bob receives a digital receipt.” No human approval needed.
This tech has made Ethereum the foundation of an entire ecosystem: DeFi, NFTs, blockchain games, and more.
Ether (ETH), Ethereum’s native currency
On Ethereum, the native cryptocurrency is ether (ETH). It’s used to pay transaction fees on the network. Every action—whether sending tokens or launching a smart contract—requires a bit of ETH, known as “gas”.
ETH’s value changes like Bitcoin, but its utility is tied to the demand on the platform.
Ethereum is evolving fast
Ethereum has come a long way. In 2022, it shifted from a “Proof of Work” to a “Proof of Stake” system through a major update called The Merge. This reduced energy use massively, making Ethereum more eco-friendly.
Many upgrades are still on the way to improve speed, security, and reduce costs.
Why Ethereum is so popular
- It lets anyone build decentralized apps
- It’s open and accessible
- It has a huge developer community
- It powers NFTs, DeFi, and Web3
Ethereum is not just a currency—it’s a powerful tool for creating, exchanging, and using digital services. At Coinstancy, we help you use Ethereum the smart way.