What is it?

Ethereum is a decentralized, open-source platform designed for developing and running smart contracts and decentralized applications (dApps). It holds the second-largest market capitalization among cryptocurrencies, after Bitcoin. As of 2025, Ethereum's total market cap is estimated to exceed $400 billion (CoinMarketCap). Ethereum is not just a digital currency — it’s often referred to as the “world computer” because it allows code to run on a distributed network without control by governments or corporations.

Source: ethereum.org

Who created it?

Vitalik Buterin, a Canadian programmer of Russian origin, proposed the concept of Ethereum in 2013. The mainnet officially launched on July 30, 2015. The platform is managed in a decentralized manner through the Ethereum Foundation, registered in Switzerland. Fun fact: According to Forbes (2023), Buterin’s net worth is estimated to exceed $400 million in crypto assets.

Who uses it?

• Over 250 million unique addresses (Etherscan)
• Thousands of companies — from startups to corporations like Ubisoft, Reddit, and Visa, which are testing payments or running pilot projects on Ethereum
• Developers, DeFi startups, NFT marketplaces (OpenSea, Rarible, Blur)
• Everyday users and investors

What is it used for?

• Peer-to-peer (P2P) money transfers
• Paying gas fees — transaction and smart contract execution costs
• Collateral in DeFi — e.g., MakerDAO, Aave
• Capital storage: many hold ETH as a long-term investment Currently, over $30 billion is locked in Ethereum DeFi smart contracts (DefiLlama)

Why is it important?

Ethereum is the infrastructure for over 80% of all Web3 tokens and projects: NFTs, DAOs, DEXs, DeFi. The network continues to evolve: in 2022, Ethereum transitioned to Proof-of-Stake (The Merge), reducing energy consumption by about 99% (Ethereum Foundation). Currently, scalability improvements are underway through sharding and Layer 2 solutions (Arbitrum, Optimism, zkSync).