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What is Ethereum?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 5 min
In short
Ethereum is a blockchain that runs programs — smart contracts — as well as payments. Most DeFi and NFT activity happens on it.
Key points
- Runs smart contracts
- Moved to Proof of Stake in 2022
- Transactions cost gas
- Layer 2 networks reduce those costs
Definition
A general-purpose blockchain platform that can execute arbitrary programs on-chain.
A smart contract is a program that executes automatically once its conditions are met — 'if this, then transfer' — without an intermediary.
Running one costs gas. Fees spike when the network is busy, so Layer 2 networks such as Arbitrum and Base batch work off the main chain to reduce cost.
Watch out for
- · A vulnerable contract can drain funds
- · Approvals persist until you revoke them