What is Ethereum?

Ethereum is an open-source platform built on blockchain technology where developers can build and deploy decentralised applications (dApps). Enabled by the Ethereum blockchain technology, these dApps are able to run without the presence of any intermediaries or controlling entities; thus, changing the way the internet works entirely.

The idea was proposed by Vitalik Buterin, who sent the Ethereum whitepaper to his friends, some of which showed interest and reached out to him for further discussion. In January 2014, the founding team announced the Ethereum project to the public. The project was funded through a crowd-sale of the Ethereum network’s native token, Ether that was launched a few months following its public announcement.

Ether acts like the fuel that powers the dApps that run in the Ethereum network. On the other hand, it also operates as a digital currency and can be traded in crypto exchanges, like Bitfinex. So, when people say, “Should I buy Ethereum”, it actually refers to Ether, also known by its ticker, ETH.

The Ethereum network has also been used as a platform to launch other cryptocurrencies, known as either ERC721 or ERC20 tokens. Until today, the network has hosted the development of thousands of dApps, including hundreds of DeFi projects, and witnessed the rise of the DeFi ecosystem, which is said to be worth billions of dollars.