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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteEthereum is a public blockchain and shared computing platform; ETH (ether) is its native cryptocurrency. Ethereum’s network runs smart contracts and applications, while ETH pays for computation and helps secure the network through staking. The distinction matters: when someone refers to “the price of Ethereum,” they usually mean ETH’s market price, not the value of the network itself.
What is Ethereum?
Ethereum is a public blockchain: a database shared across many computers whose participants agree on the network’s current state. It is also a computing platform. Its nodes run the Ethereum Virtual Machine (EVM), a shared environment in which programs called smart contracts execute.
A user can submit a transaction requesting a computation—for example, transferring ETH or interacting with an application. Network participants verify and execute the transaction, then propagate the resulting state change. Smart contracts can be used repeatedly: once deployed, users interact with them by sending further transactions.
Ethereum.org describes the platform as “a blockchain with a computer embedded in it.” The “computer” is the EVM, not a single physical machine; it is the shared execution environment maintained by the network.
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What is ETH?
ETH, also called ether, is Ethereum’s native cryptocurrency. It is not the network itself. ETH is used to pay transaction fees and is staked by validators who help operate and secure Ethereum Mainnet. It also serves as collateral in parts of decentralized finance (DeFi) and as a unit of account in some NFT marketplaces, according to ethereum.org.
ETH does not have a fixed supply cap established by the protocol. New ETH is issued under protocol rules as validator rewards, with issuance depending in part on how much ETH is staked and validator performance. Ethereum also burns transaction base fees. Issuance and burning can offset each other to different degrees, depending partly on network use; this does not make ETH’s supply permanently fixed or guarantee that its supply will decline.
How are Ethereum and ETH different?
| Term | What it means | What it does |
|---|---|---|
| Ethereum | The blockchain network and shared computing platform | Maintains the EVM and the network state, and processes transactions and smart-contract activity |
| ETH (ether) | The network’s native cryptocurrency | Pays fees, is staked by validators, and is used as collateral or a unit of account in some applications |
People sometimes say “Ethereum” when they mean ETH or ETH’s market price. In financial discussions, it is clearer to name the asset when discussing a price, holding, or transaction, and the network when discussing the technology or applications.
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How does Ethereum work?
Transactions update shared network state
A transaction is a signed request to change something on Ethereum, such as sending ETH or calling a function in a smart contract. Nodes check transactions and execute their requested computation in the EVM. Valid changes are included in the blockchain so network participants can agree on the updated state.
Smart contracts power applications
A smart contract is a program deployed to Ethereum. It can hold and transfer assets or enforce rules when users call its functions, subject to the contract’s code and the transaction’s execution. Apps may use contracts for activities such as exchanging tokens, lending, or managing digital collectibles. Interacting with a contract is not just a message: it requests computation and normally requires a fee.
Ethereum Mainnet uses proof-of-stake
Ethereum switched from proof-of-work to proof-of-stake in September 2022. In the documented direct-validator setup, a participant deposits 32 ETH into the deposit contract and runs execution, consensus, and validator software. Validators check blocks, attest to them, and may be selected to propose blocks. Dishonest conduct, including conflicting attestations, can lead to some or all of a validator’s stake being destroyed.
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Ethereum’s proof-of-stake schedule uses 12-second slots and epochs of 32 slots, according to ethereum.org documentation in 2026. A slot is an opportunity for a block to be proposed; an epoch is a group of slots used in the protocol’s organization. These intervals describe protocol timing, not a promise that every user transaction will complete within one slot or epoch.
What are Ethereum gas fees?
Gas measures the computational work required to process an operation. A transaction’s fee depends on the gas it uses and the applicable fee per gas. In the general fee model, the fee is calculated from gas used multiplied by the base fee plus any priority fee:
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Transaction fee = gas used × (base fee + priority fee)
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- Gas used reflects the computation the transaction requires. More complex operations, such as interacting with a contract, can use more gas than a simple ETH transfer.
- Base fee varies with network demand and is burned by the protocol.
- Priority fee is an optional tip intended to make a transaction more attractive for inclusion; it can go to the validator.
Ethereum.org’s 2026 documentation gives 21,000 gas units as the amount used by a standard ETH transfer. That is a quantity of gas, not a fixed price in ETH or dollars. The monetary fee still depends on the applicable gas price, which changes with network conditions. A failed transaction can also consume gas because computation was attempted.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How does Ethereum staking work?
Staking is the process of committing ETH to Ethereum’s proof-of-stake system. Validators use staked ETH as collateral while performing duties such as checking and attesting to blocks. Protocol rewards are issued to validators, while penalties can apply for failures or dishonest behavior.
Direct validation has operational requirements: the documented deposit is 32 ETH, and the participant must run the relevant software. Holding ETH alone does not make someone a validator. Staking pools and other services may let people participate with less than 32 ETH, but their custody arrangements, fees, liquidity, and smart-contract or provider risks depend on the specific service. Staking is therefore not the same as simply holding ETH in a wallet, and rewards are not guaranteed investment returns.
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What is an Ethereum layer 2?
A layer 2 (L2) is a companion network that processes transactions separately from Ethereum Mainnet and sends data or a summary back to Ethereum. This approach can reduce costs for some activity while still relying on Ethereum in some way, but the exact design and security properties vary by L2.
An L2 transaction is not identical to a Mainnet transaction. Fees depend on the chosen network, transaction, and current conditions, so there is no single universal Ethereum fee. Moving assets between Mainnet and an L2 may involve a bridge or other transfer mechanism, adding steps and risks that differ by network.
What does this mean for a wallet and an ETH holder?
A wallet is software or a physical device used to access accounts and sign transactions; the ETH itself is recorded on the blockchain rather than stored inside the wallet. A hardware wallet is an optional type of device that keeps key material offline. It is not required to use Ethereum, and no wallet guarantees security: users remain responsible for protecting keys and recovery information.
For someone assessing ETH as a financial asset, the network’s uses and the asset’s market price are separate questions. Ethereum activity can require ETH for fees and staking, but that does not establish a particular market value, future return, or risk level. Prices, transaction costs, and service terms can change; check the specific asset, network, and service before acting.
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