What Is Ethereum? A Beginner's Guide (2026)

Education · Informational guide · Updated 2026

Definition

Ethereum is a decentralized network that runs smart contracts, which are programs that execute automatically when conditions are met.

Beyond money

While Bitcoin focuses on being money, Ethereum is a general-purpose platform. Most DeFi apps, NFTs and tokens are built on Ethereum.

Ether and gas

Ether (ETH) is Ethereum's native currency. Gas is the fee you pay to run transactions and smart contracts on the network.

Proof of stake

Ethereum moved to proof of stake, so holders can stake ETH to help secure the network and earn rewards.

Why it matters

Ethereum is the foundation of decentralized finance and much of the Web3 economy, making it the second-largest cryptocurrency.

Bottom line

Ethereum is the world's leading smart-contract platform and the backbone of most decentralized applications.

This article is for educational and informational purposes only and does not constitute financial advice. Always do your own research. Cryptocurrency is volatile and involves risk of loss.