Ethereum is a blockchain platform serving as a foundational building block for decentralized applications. Its native cryptocurrency, Ether (ETH), is used to pay for gas fees charged when interacting with the Ethereum network. Developers can build decentralized applications (DApps) or tokens on the Ethereum blockchain. Vitalik Buterin published the Ethereum whitepaper in late 2013, but the blockchain wasn't launched until 2015 as a product of several co-founders, including Buterin. The price of ETH — or Ethereum's price in USD — has risen significantly in the years since 2015.
How Ethereum Works
The Ethereum blockchain initially operated as a proof-of-work (PoW) blockchain, relying on Ethereum mining to produce blocks. In this system, miners (computational devices configured to run automatically) compete to solve complex puzzles. The winner earns the right to produce a block on the network, which contains transactions and a block reward. The miner who discovers the block receives both the block reward and associated transaction fees.
In 2020, Ethereum began transitioning to Ethereum 2.0 (Eth2), a multi-phase upgrade aimed at scaling the blockchain and shifting to a proof-of-stake (PoS) consensus algorithm. Ethereum 2.0 relies on validators staking a minimum of 32 ETH to secure the network.
Ethereum supports smart contracts, which are self-executing digital agreements triggered when predefined conditions are met. Developers build DApps on Ethereum, which may resemble traditional apps but operate on the blockchain via smart contracts. Tokens like ERC-20 (fungible) and ERC-721 (non-fungible tokens/NFTs) can also be deployed on Ethereum.
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Security of Ethereum
As a decentralized blockchain managed by a global network of participants — with no single controlling entity — Ethereum is generally more secure than centralized alternatives.
Ethereum Price Trends
Ethereum launched its initial coin offering (ICO) in 2014 before its mainnet went live in 2015. By 2016, ETH traded below $10 per token. Its value surged in subsequent years, peaking at over $4,500 in 2021. However, ETH prices remain volatile, like most crypto assets.
Ethereum gas fees — charged for transactions — became a significant concern during peak network usage in 2020–2021.
Supply and Demand of Ethereum
Unlike Bitcoin’s capped supply of 21 million, Ethereum has no hard supply limit, though annual issuance is restricted to ~18 million ETH. The 2021 London upgrade introduced ETH burning, reducing net supply growth over time. Ether is considered a disinflationary asset due to its decreasing inflation rate.
Key Metrics:
- Current ETH Price: Check the live price widget above.
- Market Cap: Total value of all ETH in circulation.
- Historical Data: Refer to the ETH price chart for trends.
How to Buy Ethereum
Users can purchase ETH through:
- Exchanges: Platforms like OKX, Binance, or Coinbase.
- Peer-to-Peer (P2P): Direct trades with cash or other payment methods (ensure compliance with local laws).
- DeFi Swaps: Decentralized exchanges (DEXs) like Uniswap.
👉 Explore the best platforms to buy Ethereum
FAQ Section
Q: What is Ethereum used for?
A: Ethereum enables smart contracts, DApps, and token creation, supporting decentralized finance (DeFi), NFTs, and more.
Q: How does staking ETH work?
A: Validators lock 32 ETH to participate in PoS consensus, earning rewards for securing the network.
Q: Why are gas fees high?
A: Fees spike during network congestion. Upgrades like Eth2 aim to reduce costs.
Q: Is Ethereum inflationary?
A: No. Its disinflationary model means inflation decreases over time.
Q: Can I mine Ethereum after Eth2?
A: No. Mining is obsolete post-PoS transition; staking replaces it.