Ethereum.

Ethereum is a blockchain network that runs programs called smart contracts, with its own cryptocurrency, Ether, used to pay for activity on it.

Reviewed by Joseph Citizen, Founder · Last reviewed July 13, 2026

Verified July 2026 · Source: SEC (Investor.gov)

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Ethereum

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In plain English

Ethereum is a public blockchain that does more than move a currency around: it runs small programs called smart contracts that execute automatically when conditions are met. Its built-in cryptocurrency, Ether or ETH, is used to pay the network for processing transactions and running those programs. A large share of crypto activity, including most stablecoins, NFTs, and decentralized finance apps, is built on Ethereum. Like Bitcoin, its price is set by market demand and can be highly volatile. In 2022 it switched from proof of work to proof of stake to cut its energy use.

Most useful ages

18 to 70

01Why it matters

Ethereum is the platform most other crypto projects are built on, so its fees, congestion, and rules ripple across the whole market you might be exposed to.

02The math, step by step

To move an Ethereum-based stablecoin, you pay a network fee in ETH, called gas. If gas is high, a simple transfer that moves 100 dollars might cost 15 dollars in fees, so timing and network demand matter.

03What this is NOT

Do not confuse with A company or a stock

Ethereum is NOT a company and Ether is not a share of stock. Buying Ether gives you a network token, not ownership of a business, profits, or voting rights.