Ethereum is a decentralized, open-source blockchain platform launched in 2015 by Russian-Canadian programmer Vitalik Buterin. Unlike Bitcoin, which was designed primarily as a digital currency, Ethereum was built to do much more. It allows developers to create and deploy decentralized applications (DApps) that operate on a global network of computers without the need for a central authority.
At the core of Ethereum’s functionality are smart contracts—self-executing pieces of code that automatically carry out predefined actions when certain conditions are met. This innovation has unlocked entirely new use cases for blockchain technology, from decentralized finance (DeFi) and non-fungible tokens (NFTs) to gaming, digital identity, and even voting systems.
All activity on the Ethereum network is powered by its native cryptocurrency, Ether (ETH). ETH is required to pay gas fees, which are transaction fees used to compensate network validators and maintain security. Every transaction, contract deployment, or DApp interaction incurs a gas fee, and these fees fluctuate based on network demand.
Naturally, the ETH price is closely watched by investors, developers, and users alike. Since its launch, ETH has grown dramatically in value—from under $1 in 2015 to highs of over $4,000 in 2021. The eth price is influenced by various factors, including network usage, upgrades, macroeconomic trends, and the broader cryptocurrency market.
A major turning point for Ethereum was its move from the Proof of Work (PoW) model to Proof of Stake (PoS), finalized in September 2022 with an upgrade known as The Merge. Under PoS, validators are selected to confirm transactions based on the amount of ETH they stake—specifically 32 ETH per validator. This upgrade reduced Ethereum’s energy consumption by over 99%, making the platform more sustainable and appealing to eco-conscious users and institutions.
Following The Merge, the Shanghai upgrade introduced in 2023 added another major feature: the ability to unstake ETH that had been locked in the network since staking began. This improved liquidity, encouraged more participation in staking, and further stabilized the network’s security model.
Ethereum’s ecosystem continues to evolve rapidly. Innovations like layer 2 scaling solutions (e.g., Arbitrum and Optimism), Ethereum Name Service (ENS), and decentralized autonomous organizations (DAOs) are expanding the network’s functionality and user base.
As Ethereum grows, so does interest in its native token. The ETH price remains a reflection of its adoption, utility, and market sentiment. While volatile, ETH has proven to be one of the most important digital assets in the crypto economy, second only to Bitcoin in market capitalization.
With its combination of programmability, decentralization, and continuous innovation, Ethereum is more than just a cryptocurrency—it’s the foundation for the next generation of the internet.
