Ethereum (ETH) – more than just a cryptocurrency

Ethereum (ETH) is one of the most important and influential cryptocurrencies in the world, consistently ranking second after Bitcoin in terms of market capitalization. Launched in 2015 by Vitalik Buterin and a team of developers, Ethereum was not designed just as a means of payment but as a decentralized platform for applications and smart contracts.

What is Ethereum?

Ethereum is an open-source blockchain that allows developers to create and run smart contracts – programs that execute automatically when certain conditions are met. These contracts eliminate the need for intermediaries and increase the transparency and security of transactions.

The native cryptocurrency of the network is called Ether (ETH) and is used for:

• transaction fees (gas fees),

• rewarding validators,

• interacting with decentralized applications (dApps).

Why is ETH so important?

Ethereum has become the foundation for numerous innovations in the crypto ecosystem, such as:

• DeFi (Decentralized Finance) – financial services without banks,

• NFTs (Non-Fungible Tokens) – unique digital assets,

• DAOs (Decentralized Autonomous Organizations) – organizations governed by code.

The transition to Ethereum 2.0 and the Proof of Stake (PoS) consensus mechanism has significantly reduced energy consumption and improved the scalability of the network.

ETH Price Evolution

The chart above illustrates, for reference, the price evolution of Ethereum over the years. High volatility, characteristic of the crypto market, can be observed, as well as the long-term upward trend fueled by the increasing adoption of blockchain technology.