$ETH

Ethereum plays a central role in Web3, often considered the backbone of this new internet era. Here’s a simple breakdown of why:

1. Decentralized Infrastructure

Web3 is all about decentralization, meaning no single company or government controls the system. Ethereum provides the blockchain infrastructure that allows developers to build decentralized apps (dApps) without relying on traditional servers.

2. Smart Contracts

Ethereum introduced smart contracts—self-executing code that runs when specific conditions are met. These power everything from NFTs and DeFi protocols to DAOs and gaming economies. It’s like programmable money and logic on the blockchain.

3. Native Currency (ETH)

ETH is used to pay for transactions, run smart contracts, and interact with dApps. It’s essential for maintaining the network and incentivizing miners/validators (in Ethereum’s Proof-of-Stake system).

4. dApps Ecosystem

Ethereum hosts thousands of dApps—covering finance (Uniswap, Aave), gaming (Axie Infinity), NFTs (OpenSea), and more. This ecosystem is key to the Web3 economy, where users own their data and digital assets.

5. Identity & Ownership

Web3 aims to give people digital sovereignty. Through Ethereum, users can have crypto wallets that act as their identity across platforms. Assets like NFTs prove ownership of digital content or access rights—stored on-chain and accessible only by the owner.