What Is Ethereum (ETH)? Smart Contracts, Gas and the EVM
Ethereum is a programmable blockchain that runs smart contracts. Here is what ETH does, how gas fees work, and why it matters.
Not financial advice. This article is for informational purposes only. Cryptocurrency is volatile and high-risk — do your own research.
Ethereum is a blockchain designed to do more than move money. Launched in 2015, it lets developers deploy smart contracts — self-executing programs that run exactly as written, without an intermediary. Ether (ETH) is the network’s native token.
Smart contracts and the EVM
A smart contract is code stored on the blockchain that runs when certain conditions are met. These programs execute on the Ethereum Virtual Machine (EVM), a shared computer replicated across thousands of nodes. Because the same rules run everywhere, applications can operate without trusting any single party. This is the foundation for decentralised finance (DeFi), NFTs, stablecoins and much more.
What is gas?
Every action on Ethereum — sending ETH, swapping a token, minting an NFT — consumes computing resources. Users pay for that work in gas, denominated in ETH. Gas prices rise when the network is busy and fall when it is quiet, which is why the same transaction can cost very different amounts at different times.
Proof of stake
In 2022 Ethereum switched from proof of work to proof of stake, cutting its energy use by more than 99%. Instead of miners, validators now secure the network by staking ETH as collateral. This also changed ETH’s economics, introducing staking rewards and, at times, a net reduction in supply.
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