Ethereum (in English: Ethereum) or Ether (abbreviation: ETH; symbol: Ξ) is a public decentralized open-source platform and cryptocurrency based on blockchain technology that functions through smart contracts, facilitating the execution of contracts online that mimic traditional contracts in reality while providing an element of security and trust. Ether ranks second after Bitcoin in terms of market capitalization. Ethereum was proposed in late 2013 by programmer Vitalik Buterin, of Russian-Canadian origin, and its development was funded by internet crowds during July-August 2014. Among the founders of Ethereum are Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin. The platform went live on July 30, 2015.
Ethereum allows users to create and exchange non-fungible tokens, which are unique tokens representing ownership of an asset or associated privilege. It also allows anyone to publish permanent and immutable decentralized applications that users can interact with. Decentralized exchange applications provide a wide range of financial services without the need for typical financial intermediaries such as brokerage firms, exchanges, or banks, and allow cryptocurrency users to borrow against their holdings or lend them for interest.
Ethereum upgraded its consensus mechanism from proof-of-work to proof-of-stake on September 15, 2022, in a process known as the Merge.
On July 23, 2024, regulators in the United States approved the first exchange-traded funds that invest directly in Ethereum.
