Definition
Ethereum is a public blockchain platform designed to execute transactions and programmable smart contracts across a distributed network. Its native asset is ether, commonly abbreviated ETH, which is used to pay transaction fees and participates in the network's proof-of-stake security system. Applications can issue separate tokens using standards such as ERC-20 and ERC-721, but those tokens are not automatically equivalent to ETH. Ethereum's execution environment lets contracts maintain state and interact with one another, supporting exchanges, digital collectibles, and other applications. That flexibility also creates risks involving contract logic, permissions, and dependencies. Ethereum should be distinguished from Bitcoin, which has a different transaction model and uses proof of work. It should also be distinguished from Ethereum-compatible networks: software compatibility does not mean they share the same validator set, native asset, settlement guarantees, or bridge arrangements.
Source references
References accompanying this glossary entry:
- https://ethereum.org/developers/docs/intro-to-ethereum/
- https://ethereum.org/developers/docs/consensus-mechanisms/pos/
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