$ETH
native asset
Layer 1 Smart Contract Platform ÔÇö $ETH
$ETH is the native token of the Ethereum blockchain ÔÇö a decentralized smart contract platform launched in 2015 by Vitalik Buterin and others. Ethereum enables programmable money, decentralized applications (dApps), and full-scale DeFi ecosystems. After starting with Proof of Work, Ethereum transitioned to Proof of Stake in 2022 via The Merge, becoming more energy efficient while maintaining security and decentralization.
Use Case: $ETH is required for deploying smart contracts, paying for gas, staking, and participating in Ethereum-based DeFi protocols, DAOs, and NFT platforms.
Key Concepts:
- Smart Contracts ÔÇö Self-executing code that runs on-chain without intermediaries.
- Proof of Stake ÔÇö Validators secure the network by staking ETH instead of mining.
- Gas Fees ÔÇö Payments required to execute transactions or contracts on Ethereum.
- Ethereum 2.0 ÔÇö Multi-phase upgrade for scalability, sustainability, and security.
- dApps ÔÇö Decentralized applications powered by the Ethereum Virtual Machine (EVM).
Summary: $ETH is the fuel of the Web3 economy. As Ethereum evolves, it remains the dominant programmable blockchain for DeFi, NFTs, DAOs, and Layer 2 scaling ÔÇö making $ETH both a utility token and a digital asset for sovereign wealth strategy.
| Feature | $ETH | $BTC | Layer 2 Token |
|---|---|---|---|
| Network Role | Smart contract and dApp execution | Digital store of value and payment layer | Scaling Ethereum via rollups or sidechains |
| Consensus | Proof of Stake (post-Merge) | Proof of Work (fixed supply) | Depends on parent chain (e.g., Arbitrum, Optimism) |
| Gas Fees | Required for all transactions | None (unless wrapped for use on ETH) | Paid in native or bridged ETH |
| Use Cases | DeFi, NFTs, DAOs, token issuance | Store of value, inflation hedge, payment | Fast, cheap DeFi/NFT transactions |
Mini History of $ETH
$ETH was proposed in 2013 by Vitalik Buterin, a developer and co-founder of Bitcoin Magazine, who envisioned a more flexible blockchain for decentralized computation. After raising over $18 million in a 2014 ICO, Ethereum launched in July 2015 with native support for smart contracts and dApps.
Ethereum was initially secured by Proof of Work, like Bitcoin. In 2022, Ethereum underwent its most significant upgrade ÔÇö The Merge ÔÇö transitioning to Proof of Stake, cutting energy consumption by over 99%. This milestone was part of the Ethereum 2.0 roadmap, which also includes future upgrades like sharding and scalability improvements.
Today, $ETH powers the largest ecosystem of decentralized applications, token economies, and financial primitives ÔÇö from NFTs and stablecoins to synthetic assets and DAOs ÔÇö making it a cornerstone of Web3 innovation.