Simple definition
Ethereum is a blockchain that can run small programs called smart contracts, so it supports apps as well as digital money.
How it works
- It has its own coin, called ether (ETH), used to pay fees.
- Developers put programs on it. These programs are called smart contracts.
- Anyone can use the apps built on it with a wallet.
Everyday example
In real life
A ticket app on Ethereum can issue digital tickets, and a program can check that a ticket is real at the door.
Benefits and why this matters
Why this matters
Many of the apps, tokens, and collectibles you hear about run on Ethereum. It is a good place to see how Web3 apps work.
- Open for developers to build on
- Many apps share the same system
- Programs follow rules written in advance
Risks and limitations
Things to watch out for
- Watch out: Fees can rise when the network is busy
- Watch out: Bugs in programs can cost people money
- Watch out: Many copycat tokens exist
Your beginner action
Try this
Find the beginner section on the official Ethereum website and read its explanation of ether and smart contracts.