What Is Ethereum?

Ethereum is a cryptocurrency and decentralized computing platform launched in 2015 by Vitalik Buterin and a team of co-founders. Unlike Bitcoin, Ethereum is not only digital money — it is infrastructure for smart contracts, decentralized applications, DeFi projects, and many other blockchain services.

ETH is the native token of the Ethereum network and is used to pay transaction fees, run applications, and secure the network. Because of its broad use case, Ethereum is one of the most important projects in crypto and often has a strong impact on investor sentiment.

For beginners, the key takeaway is that Ethereum is not simply “the second Bitcoin.” It is a technology platform with a broad ecosystem and ongoing development. Its value often depends on network activity, upgrades, and interest in decentralized finance applications.