What is Ethereum?
A blockchain that runs programmable "smart contracts", powering most DeFi and NFT activity.
Ethereum, launched in 2015, generalised the blockchain idea: instead of only recording payments, it runs programs — "smart contracts" — that execute exactly as written, with no company operating them. That single feature spawned most of what crypto now contains: DeFi lending and trading, NFTs, stablecoins, and thousands of tokens that live on Ethereum rather than on their own chain.
Its coin, ether (ETH), is the fuel: every transaction and contract execution pays gas fees in ETH, and since the network's 2022 switch to proof-of-stake, ETH can also be staked to earn yield. So where Bitcoin's value case is scarce money, Ethereum's is closer to owning the toll road of a programmable economy — different bets, as our head-to-head spells out.
See it in practice
Related terms: Gas fees · DeFi · Staking · full glossary
FAQ
What is a smart contract, really?
A program stored on the blockchain that runs automatically when its conditions are met — like a vending machine: insert the input, receive the output, no shopkeeper involved. The catch is that code with bugs also executes exactly as written.
Is Ethereum better than Bitcoin?
They're trying to be different things — conservative digital money versus a programmable platform. Serious portfolios often treat them as separate asset classes rather than competitors.
General information only, not financial advice. Definitions are maintained in our fact database and reviewed with the daily rebuild.