Ethereum

![Eth-diamond-rainbow.png][float-right] Ethereum is a decentralized, open-source blockchain platform launched in July 2015 that enables the deployment and execution of smart contracts—self-enforcing code that automates agreements without intermediaries—and supports the building of decentralized applications (dApps) across sectors like finance, gaming, and identity. Its native cryptocurrency, Ether (ETH), serves to pay transaction fees (known as gas) and secure the network through staking in a proof-of-stake consensus mechanism, implemented in September 2022 via"The Merge,"which shifted from energy-intensive proof-of-work to proof-of-stake for substantially improved security and reduced the platform's energy use by over 99%. Conceived in a 2013 white paper by programmer Vitalik Buterin, who drew from Bitcoin's limitations to propose a more programmable blockchain, Ethereum raised funds through an initial coin offering in 2014 before its mainnet activation.[](https://ethereum.org/ethereum-history-founder-and-ownership/)

Ethereumis a decentralized blockchain with smart contract functionality.Etheris the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.