Ethereum (ETH) is the world's leading smart contract platform, enabling developers to build decentralized applications (dApps) on its blockchain. Launched in 2015 by Vitalik Buterin and co-founders, Ethereum extended blockchain technology beyond simple transfers to programmable money.
Smart Contracts Explained
Smart contracts are self-executing programs that run on the Ethereum blockchain. They automatically enforce the terms of an agreement when predetermined conditions are met, eliminating the need for intermediaries. This enables everything from automated lending to decentralized exchanges.
The Ethereum Ecosystem
Ethereum powers the vast majority of DeFi (Decentralized Finance) protocols, NFT marketplaces, and Layer 2 scaling solutions. Major projects built on Ethereum include Uniswap, Aave, Lido, and thousands more.
The network transitioned from Proof of Work to Proof of Stake in September 2022 (known as The Merge), reducing energy consumption by over 99%. Validators now stake ETH to secure the network and earn rewards.
Ethereum Gas Fees
Every transaction on Ethereum requires gas — a fee paid to validators for processing. Gas prices fluctuate based on network demand. Layer 2 solutions like Arbitrum, Optimism, and Base help reduce fees by processing transactions off the main chain.
EIP-1559 and ETH Burns
Since August 2021, a portion of every transaction fee is permanently burned (destroyed), reducing ETH supply over time. During periods of high network activity, more ETH can be burned than created, making ETH deflationary.
Tracking ETH Smart Money
CoinMarketGuy's Smart Money Tracker monitors large Ethereum wallet movements in real-time. See when institutional wallets from firms like a16z, Paradigm, and Galaxy Digital accumulate or distribute ETH.