Buy Ethereum

Ethereum (ETH) is a decentralised blockchain platform that lets people build and use apps without relying on a central authority. Its native cryptocurrency is called Ether, or ETH.

While Bitcoin was designed mainly as digital money, Ethereum was built to do more than send value from one person to another. It allows developers to create smart contracts, which are pieces of code that automatically run when certain conditions are met.

These smart contracts power many parts of the crypto ecosystem, including decentralised finance (DeFi), NFTs, stablecoins, blockchain games and tokenised assets.

Ethereum is maintained by a global network of computers that process transactions, secure the network and keep a shared public record of activity on the blockchain.

What is Ethereum used for?

Ethereum is used to run decentralised applications and transfer value across the internet. ETH is the asset used to pay for transactions on the Ethereum network, including sending tokens, interacting with apps and using smart contracts.

These transaction costs are known as gas fees. Think of gas like a network fee: when you use Ethereum, you pay ETH to have your transaction processed and recorded on the blockchain. Gas fees can rise or fall depending on how busy the network is.

Ethereum is also used for staking. Since 2022, Ethereum has used a system called Proof of Stake, where validators help secure the network by locking up ETH. In return, validators can earn rewards for helping confirm transactions and maintain the blockchain.

Unlike Bitcoin, Ethereum does not have a fixed 21 million coin supply. Instead, its supply is managed by the network’s rules, including ETH issuance and fee burning. This means Ethereum’s supply can change over time depending on network activity and protocol updates.

The history of Ethereum

Ethereum was first proposed in 2013 by Vitalik Buterin, a programmer and early Bitcoin community member who wanted to create a more flexible blockchain.

The Ethereum network officially launched on 30 July 2015.

Its main innovation was the introduction of a general-purpose blockchain that could support smart contracts, rather than only recording payments, an idea first set out in the Ethereum white paper. This made Ethereum one of the foundations for much of today’s crypto ecosystem.

For its first several years, Ethereum used crypto mining, similar to Bitcoin. That changed in September 2022 with an upgrade known as The Merge, when Ethereum moved from Proof of Work to Proof of Stake. This removed traditional ETH mining and changed how the network is secured.

Today, Ethereum remains one of the largest and most widely used blockchain networks. People buy ETH for many reasons, including using blockchain applications, paying gas fees, staking, or gaining exposure to the Ethereum ecosystem. You can read more in our guide to why investors buy Ethereum.