Ether (ETH)
The native cryptocurrency of Ethereum, used to pay transaction fees, secure the network, and interact with apps and smart contracts.
Ether (ETH) is the native cryptocurrency of the Ethereum network. It is used to pay for transactions and computational work, such as sending tokens, minting NFTs, using decentralized exchanges, or running smart contracts. These payments are often called gas fees because they compensate the network for processing and validating activity. ETH is also used in Ethereum’s proof-of-stake system, where validators stake ETH to help secure the blockchain and confirm new blocks.
ETH matters because Ethereum is designed as a platform for programmable applications, not just simple payments. If Bitcoin is often compared to digital money, ETH is closer to the fuel and economic incentive system that keeps Ethereum running. For example, if someone wants to swap one token for another on an Ethereum-based app, they typically need a small amount of ETH in their wallet to pay the transaction fee, even if the tokens being traded are not ETH.
Other terms in Ethereum
Account Abstraction (ERC-4337)
A way for Ethereum wallets to act like smart contracts, enabling features such as gas sponsorship, account recovery, and custom transaction rules.
Beacon Chain
Ethereum’s proof-of-stake coordination layer that organizes validators and finalizes blocks for the network.
EIP
An Ethereum Improvement Proposal is a formal document used to suggest, discuss, and standardize changes to the Ethereum network or ecosystem.
ERC-1155
An Ethereum token standard that lets one smart contract create and manage multiple token types, including fungible tokens, NFTs, and semi-fungible items.