What Is Ethereum? The Programmable Blockchain Explained
Ethereum, explained: smart contracts, ETH, gas fees, and why most of Web3 runs on top of it.
Ethereum vs Bitcoin in one paragraph
Where Bitcoin is designed primarily as digital money, Ethereum is a programmable blockchain. Developers can deploy smart contracts, small programs that execute exactly as written, to build applications including stablecoins, lending markets, exchanges, NFT platforms and identity systems.
What ETH is for
ETH is the native asset of the Ethereum network. It is used to pay gas fees for transactions, to secure the network through staking, and as collateral in many DeFi applications. The supply schedule combines small issuance to validators with a fee-burn mechanism, making net issuance variable.
The Layer 2 era
Modern Ethereum activity is increasingly happening on Layer 2 networks, Arbitrum, Optimism, Base, zkSync, which inherit Ethereum's security but offer dramatically lower fees. Most users today interact primarily with L2s and bridge to mainnet only when necessary.
How to buy ETH
ETH is available on every major exchange. Bybit offers deep ETH spot and derivatives liquidity, making it a common venue for both long-term holders and active traders.
Frequently asked questions
Is Ethereum better than Bitcoin?
They serve different purposes. Bitcoin is a monetary asset; Ethereum is a smart contract platform. Many investors hold both.
What are gas fees?
Gas fees are payments to validators for processing transactions. They vary with network demand.
Can ETH supply go negative?
Net issuance can turn negative during periods of high network activity because more ETH is burned than issued.
Where can I buy Ethereum?
Regulated venues including Bybit, Coinbase, Kraken and Binance support ETH purchases.
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