Ethereum
A programmable blockchain and its currency, ether (ETH), that runs smart contracts.
A programmable blockchain
Launched in July 2015, Ethereum is a blockchain that does more than record transfers: it runs programs, smart contracts. Most of decentralised finance, stablecoins and non-fungible tokens are built on it. Its currency, ether (ETH), pays for execution fees, known as gas fees.
From mining to proof of stake
On 15 September 2022, at “The Merge”, Ethereum dropped mining (proof of work) for proof of stake: blocks are now validated by holders who lock 32 ETH per validator. The network’s energy use fell by about 99.9%.
Since August 2021 (EIP-1559), part of every fee is destroyed (“burned”). When activity is high, the amount burned can exceed the issuance paid to validators, and the ETH supply shrinks.
Common mistakes
- Confusing Ethereum (the network) with ether (the currency): ETH’s price alone says nothing about network use.
- Believing ETH supply is capped like bitcoin’s: it depends on the balance between issuance and burned fees.
Questions and answers
Can you stake less than 32 ETH?
Yes, through pooled staking services or liquid staking tokens that pool deposits. That adds a risk tied to the intermediary or the contract.
What is a layer 2?
A network built on top of Ethereum (Arbitrum, Optimism, Base) that batches transactions and then writes them to Ethereum: fees are far lower and security relies on the main chain.
Notitia newsroom · education, not investment advice.