Protocols & Platforms
Ethereum
Proof-of-stake blockchain executing programmable smart contracts
Definition
Ethereum is a proof-of-stake blockchain whose virtual machine executes smart contracts. ETH pays execution fees and secures consensus through staking; Ethereum the network is not the same thing as ETH the asset.
Example
A standard ETH transfer using 21,000 gas at an effective price of 20 gwei costs 0.00042 ETH. At a hypothetical ETH price of $2,000, that is $0.84.
How it works
Transactions specify calls or transfers and pay for gas consumed. Validators propose and attest to blocks; finalized consensus protects the recorded execution, not the economic safety of the application.
Risks to Consider
- Congestion can make transactions uneconomic or delay inclusion
- Reorganizations can reverse inclusion before finality
- Application upgrade keys and bugs remain outside consensus guarantees
Common Questions
Is Ethereum the same as ETH?
No. Ethereum is the network and execution system; ETH is its native asset used for fees and staking. Owning ETH does not own the network’s applications.
