Ethereum (ETH)
Definition
Ethereum is a decentralized blockchain platform that enables smart contracts and decentralized applications (dApps). Created by Vitalik Buterin in 2015, it introduced programmable money to the blockchain. Ethereum transitioned from proof-of-work to proof-of-stake consensus in September 2022 ('The Merge'), significantly reducing its energy consumption. ETH is the native token used to pay gas fees for transactions and computation on the network.
Why Does This Matter?
Understanding Ethereum (ETH) is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Ethereum (ETH) feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.
Related Terms
DeFi refers to financial services built on blockchain technology that operate wi...
A smart contract is a self-executing program stored on a blockchain that automat...
Proof of Stake is a consensus mechanism where validators are chosen to create ne...
Gas fees are transaction costs paid to validators or miners for processing trans...