What is Ethereum?

Overview

Ethereum runs apps that swap tokens, lend funds, and issue stablecoins. ETH pays for activity on the network.

Compare Ethereum mainnet with a Layer 2. Name where the action runs, where its data is published, when it settles, and how funds return to mainnet.

What is Ethereum used for?

Ethereum is a programmable public blockchain for smart contracts, assets, and decentralized applications.

Use cases

Sending ETH and Ethereum-issued assets on mainnet.
Using smart-contract applications that need Ethereum mainnet execution and liquidity.
Staking ETH or interacting with systems that settle directly under Ethereum consensus.

Who founded and maintains Ethereum?

Ethereum was proposed by Vitalik Buterin in 2013 and launched in 2015 with a wider founding group. It has no single operator; the Ethereum Foundation and independent client teams contribute to the protocol.

Founders
Vitalik Buterin and Ethereum's early founders
Vitalik Buterin proposed Ethereum, and the early founding group turned the proposal into the live network.
Foundation
Ethereum Foundation
A non-profit organisation that supports Ethereum research, ecosystem projects, and protocol development.

What is Ethereum's native token?

ETH is Ethereum's native token. It pays for network activity, backs validator staking, and has a fee-burning mechanism.

Gas: ETH pays for computation and transactions on Ethereum.
Security: Validators stake ETH to help secure the network.
Supply: Part of each transaction fee is burned, while validators receive protocol rewards and tips.

Source: Ethereum gas documentation.

12-month ETH price history

The chart shows the market price of ETH over the last 12 months. It does not show network usage, project revenue, or a future return.

Recent network activity

How does Ethereum work?

The EVM executes shared state transitions while proof-of-stake validators attest to blocks.

Ethereum is a Layer 1 whose own network validates and records its transactions.

Mainnet action versus Layer 2 action

An Ethereum-mainnet action executes and settles directly under Ethereum consensus. A Layer 2 action executes on a separate network and later relies on Ethereum according to that rollup's data, proof, settlement, and withdrawal design.

Source: Ethereum Layer 2.

Apps, tools, and built-in features on Ethereum

Ethereum runs programs called smart contracts, which can hold assets and apply rules automatically when someone sends a transaction.

Tools and language: Solidity and Vyper, with wallets such as MetaMask and tools such as Remix and OpenZeppelin.
Trade-off: it is the reference point for EVM-compatible networks such as Arbitrum, Optimism, Polygon, BNB Chain, and Avalanche's C-Chain; mainnet transaction costs remain a separate consideration.

Source: Ethereum smart-contract languages and tools.

What are Ethereum's trade-offs?

Ethereum offers the deepest EVM app ecosystem and settlement layer, while mainnet blockspace is shared and demand-sensitive.

Liquidity and compatibility: Its contracts, wallets, and standards anchor the EVM ecosystem, which makes Ethereum the baseline for Arbitrum, Optimism, Polygon, BNB Chain, and Avalanche's C-Chain.
Fees and efficiency: Mainnet transactions compete for the same blockspace; users often compare Layer 2 routes when an app action does not need to execute directly on mainnet.
Security and bridging: Ethereum settlement is a core advantage for its ecosystem, while moving assets to a Layer 2 adds bridge, withdrawal, and operational assumptions.

Common questions about Ethereum

Is ETH a good investment?

ETH is Ethereum's native token. It pays for network activity, backs validator staking, and has a fee-burning mechanism. This profile does not contain current comparable price, liquidity, supply, exchange-access, governance-concentration, or regulatory evidence, so it cannot determine whether ETH is a good investment.

What should I verify before comparing Ethereum?

Verify the network fee shown before the transaction, whether the app uses Ethereum mainnet or an add-on network, and any steps needed to move funds between them. Use the same transaction type, asset route, confirmation target, and observation window when comparing Ethereum with another network.

Compare Ethereum with related networks

These comparisons share a payment, asset, application, or network-design trait. The important-difference column names the boundary that can change the choice.

Comparison	Shared focus	Important difference
Ethereum vs Avalanche	Ethereum-style apps, smart-contract apps, Layer 1 networks	Avalanche is built around Ethereum-style apps and separate purpose-built blockchains; Ethereum is built around Ethereum-style apps and digital assets.
Ethereum vs BNB Chain	Ethereum-style apps, smart-contract apps, Layer 1 networks	The main split is Ethereum-style swaps, lending, and token transfers for BNB Chain and Ethereum-style apps and digital assets for Ethereum.
Ethereum vs Ethereum Classic	Ethereum-style apps, smart-contract apps, Layer 1 networks	Ethereum Classic emphasizes proof-of-work Ethereum-style apps; Ethereum emphasizes Ethereum-style apps and digital assets.
Ethereum vs TRON	Ethereum-style apps, smart-contract apps, Layer 1 networks	TRON is built around stablecoin transfers and Ethereum-style apps; Ethereum is built around Ethereum-style apps and digital assets.
Ethereum vs Polygon PoS	Ethereum-style apps, smart-contract apps	The main split is Ethereum-style apps on Polygon PoS for Polygon PoS and Ethereum-style apps and digital assets for Ethereum.

Official Ethereum technical sources

Start with the primary documentation, then check live data separately when the decision depends on it.