Ethereum

Ethereum is a <a href="/facts/Decentralization/5koMXAUs">decentralized</a> <a href="/facts/Blockchain/8H43GgWy">blockchain</a> with <a href="/facts/Smart_contract/D5TN1q4n">smart contract</a> functionality. Ether (<a href="/facts/ISO_4217/tk7Y5uh6">abbreviation</a>: ETH) is the native <a href="/facts/Cryptocurrency/Rg6JAS8y">cryptocurrency</a> of the platform. Among cryptocurrencies, ether is second only to <a href="/facts/Bitcoin/UJvqfray">bitcoin</a> in <a href="/facts/Market_capitalization/LhcMMLHs">market capitalization</a>. It is <a href="/facts/Open-source_software/HzTaB8E9">open-source software</a>.
Ethereum was conceived in 2013 by <a href="/facts/Computer_programming/QmSsFnu0">programmer</a> <a href="/facts/Vitalik_Buterin/uLQzuCpg">Vitalik Buterin</a>. Other founders include <a href="/facts/Gavin_Wood/T34bJsfR">Gavin Wood</a>, <a href="/facts/Charles_Hoskinson/XKUFKqb6">Charles Hoskinson</a>, <a href="/facts/Anthony_Di_Iorio/cNT4LBsH">Anthony Di Iorio</a>, and <a href="/facts/Joseph_Lubin_(entrepreneur)/0yTbVKvg">Joseph Lubin</a>. In 2014, <a href="/facts/Software_development/UUfsAaYY">development</a> work began and was <a href="/facts/Crowdfunding/u9gwrlYI">crowdfunded</a>, and the network went live on 30 July 2015. Ethereum allows anyone to deploy <a href="/facts/Decentralized_application/Gpk07nv7">decentralized applications</a> onto it, with which users can interact. <a href="/facts/Decentralized_finance/xjvIyL8f">Decentralized finance</a> (DeFi) applications provide <a href="/facts/Financial_instrument/2d93t6Ya">financial instruments</a> that do not directly rely on <a href="/facts/Financial_intermediary/3oe6XkBB">financial intermediaries</a> like <a href="/facts/Brokerage/o3Fm1eIP">brokerages</a>, <a href="/facts/Exchange_(organized_market)/NTwgFnBD">exchanges</a>, or <a href="/facts/Bank/GQa9fSw4">banks</a>. This facilitates borrowing against cryptocurrency holdings or lending them out for <a href="/facts/Interest/qfNEuKg0">interest</a>. Ethereum also allows users to create and exchange <a href="/facts/Non-fungible_token/uoCFmea8">non-fungible tokens</a> (NFTs), which are tokens that can be tied to unique digital assets, such as images. Additionally, many other cryptocurrencies utilize the ERC-20 token standard on top of the Ethereum blockchain and have utilized the platform for <a href="/facts/Initial_coin_offering/HWYt46uj">initial coin offerings</a>.
On 15 September 2022, Ethereum transitioned its <a href="/facts/Consensus_(computer_science)/rC0eH88V">consensus mechanism</a> from <a href="/facts/Proof_of_work/GKI1LcQU">proof-of-work</a> (PoW) to <a href="/facts/Proof_of_stake/92d8b2Qp">proof-of-stake</a> (PoS) in an update known as "The Merge", which cut the blockchain's energy usage by 99%.

Ethereum open-in-new

Ethereum