Ethereum
ETHEthereum and ether
Ethereum is a blockchain that runs programs called smart contracts. These can manage tokens, lending, exchanges and digital applications. Ether, or ETH, is the network’s native currency. The network and its traded asset have related but distinct roles.
Transactions pay gas fees according to computational work and network demand. Validators commit ETH through staking and participate in confirming blocks under proof of stake. Staking rewards have protocol rules and technical risks; they are not company dividends.
Applications and scaling
Stablecoins, decentralised exchanges and tokenised assets operate on Ethereum. Layer-two networks process some activity separately while using the base network for settlement or security. A cheaper layer-two transfer is therefore a different service from a direct mainnet transaction.
More application activity does not automatically produce the same percentage increase in demand for ETH. The route through which users pay fees and settle transactions matters.
Supply and price context
Issuance and the burning of some fees both affect ether supply. There is no fixed cap equivalent to Bitcoin. Market liquidity, rates and expectations also affect the price. Solana offers another application-network design, while Chainlink explains how contracts can receive external information.
Updated