Ethereum (ETH)
A decentralized blockchain platform that pioneered smart contracts, enabling programmable money and decentralized applications.
What is Ethereum?
Ethereum is a blockchain network, launched in 2015 by Vitalik Buterin and co-founders, that pioneered the smart contract platform. With Ether (ETH) as its native cryptocurrency, Ethereum serves as the world’s settlement layer, acting as critical financial infrastructure akin to Google’s role in information technology. It powers decentralized applications (dApps), decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), as well as real-world assets(RWAs). As the second-largest digital asset by market cap, ETH facilitates transactions, staking, and yield generation. Its consensus algorithm was transformed from PoW to PoS in 2022 to enhance scalability, energy efficiency, and throughput.
Over $165 billion in stablecoins is currently on the Ethereum network underscoring its role in liquidity and DeFi ecosystems.
Related Terms
BUIDL
The act of actively building and contributing to the development of decentralized technologies and ecosystems, rather than solely investing or speculating.
US GAAP Stablecoin Classification
Accounting standards under U.S. Generally Accepted Accounting Principles treating certain USD-pegged stablecoins as cash equivalents.
Dodd-Frank Act Stress Tests (DFAST)
Annual assessments by the Federal Reserve evaluating large banks' capital adequacy under hypothetical severe economic scenarios to ensure resilience.
51% Attack
A 51% attack occurs when a single entity or group controls over 50% of a blockchain’s computing power or stake, allowing them to manipulate the network’s transaction ledger.
BTC ETF
Exchange-traded funds that provide direct exposure to Bitcoin's spot price, approved by the SEC in January 2024.
Cross-Chain Swap
A cross-chain swap is the exchange of digital assets between two different blockchain networks, facilitated by bridges or protocols to enable interoperability.