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Encyclopedia Ethereum · Entry 01

What is Ethereum? A shared network for running programs

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Ethereum
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7 cited records
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Key facts

Key facts for What is Ethereum? A shared network for running programs
FactDetailSource
NetworkA shared state and rules for changing it[1][4]
Native assetEther, abbreviated ETH[5]
ConsensusProof of stake[2]
01

A shared record that also runs instructions

Ethereum keeps account balances together with contract code and stored values. A transaction proposes a change. Nodes execute the relevant rules to check what the new state should be; a block records an agreed ordering of transactions.

Think of a public noticeboard with programs attached. Reading a notice does not change it. Calling a program might update a balance, register a vote or transfer a token, provided the program accepts the request.

02

Example: a ticket rule becomes a state change

Imagine a contract with ten digital tickets, each priced at 0.01 ETH. A successful purchase can reduce its available-ticket count to nine and record one ticket against the buyer. This is an illustrative contract, not a real offer.

The network checks the programmed payment and inventory conditions. It cannot establish whether a real venue exists or will admit the buyer. Connecting the digital ticket to entry at a door requires people or systems outside Ethereum.

03

The network, an application and a wallet have different jobs

A wallet prepares requests and manages signing. An application offers an interface to contracts. Ethereum supplies the execution and settlement rules. A broken website therefore does not necessarily mean the underlying contract has stopped existing.

ETH pays the network fee; an application may charge a separate price or issue its own token. Owning an application token does not automatically confer ownership of Ethereum or control over its protocol.

04

Agreement proves execution, not that an idea is sound

Consensus helps participants agree which valid changes occurred. It does not certify that a contract has no bugs, that a token has economic value or that its operator has made accurate claims.

Start by separating three questions: what does the program do, who can change or influence it, and what external promises does it rely on? The answers can differ even for applications on the same network.

Direct answers

Questions people ask

Is Ethereum the same thing as ETH?

No. Ethereum is the network and protocol; ETH is its native asset. People often use the network name casually when referring to the asset.

Does every Ethereum application belong to one company?

No. Different developers deploy applications with different governance and infrastructure. The public network does not endorse every application running on it.

Does using Ethereum make a transaction private?

No. The ordinary network records public transaction data. A wallet address is an identifier, and using it does not by itself provide anonymity.

Inspect the evidence

The answer and key facts have stable claim links. These records retain the scope and qualification when reused.

Ethereum is a public blockchain that records balances and runs programs called smart contracts. Participants agree on the resulting state using proof of stake. Ether, or ETH, is its native asset, used for transaction fees and staking. Applications can use Ethereum without being owned or operated by the Ethereum network itself.

Scope: Ethereum. Verification: verified · 2026-10-02T15:10:23.134Z.

Link to this claim
Network: A shared state and rules for changing it

Scope: Ethereum. Verification: verified · 2026-10-02T15:10:23.134Z.

Link to this claim
Native asset: Ether, abbreviated ETH

Scope: Ethereum. Verification: verified · 2026-10-02T15:10:23.134Z.

Link to this claim
Consensus: Proof of stake

Scope: Ethereum. Verification: verified · 2026-10-02T15:10:23.134Z.

Link to this claim
Revision history
  1. — First publication after primary-source research and independent automated verification.

On the Understand Ethereum path · Learn next: Ether and Ethereum: the asset, the network and the units

Source register

Sources and references

Retrieval dates and locators are recorded individually.
  1. Introduction to Ethereumethereum.org contributors

    Defines Ethereum as a shared execution/state network and separates transactions, contracts, accounts and ETH.

    Locator: What is Ethereum; what is ether; terminology · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:35:40.358654+00:00Open source
  2. Proof of stakeethereum.org contributors

    Supports 12-second slots, 32-slot epochs, stake-weighted checkpoint voting and block verification.

    Locator: Validators; transaction execution; finality; fork choice · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:35:43.818781+00:00Open source
  3. Introduction to smart contractsethereum.org contributors

    Supports contract code/state, deterministic rules, illustrative vending logic, external-data limits and multisignature access.

    Locator: What is a smart contract; a digital vending machine; limitations; multisig · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:35:40.398357+00:00Open source
  4. Ethereum Virtual Machineethereum.org contributors

    Supports deterministic execution, opcodes and the distinction between temporary execution memory and persistent state.

    Locator: State transition function; EVM instructions; storage · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:35:40.399163+00:00Open source
  5. Introduction to etherethereum.org contributors

    Defines ETH, wei and gwei, the transaction value field and the role of ETH in fees and staking.

    Locator: What is ether; denominations; transferring ether · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:42:49.460408+00:00Open source
  6. Ethereum transactionsethereum.org contributors

    Supports nonce ordering, value versus calldata, signed transaction fields, receipts and transaction inclusion.

    Locator: What is a transaction; the data field; transaction lifecycle · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:35:40.399251+00:00Open source
  7. Ethereum accountsethereum.org contributors

    Supports accounts versus wallet software and account state fields. The older empty-code EOA description is qualified using EIP-7702.

    Locator: Account types; an account examined; a note on wallets · Version / scope: dcc900ff125891da5b6c723b905a7113cf1bd864 · Retrieved: 2026-10-02T14:35:40.369782+00:00Open source
How this article was made

Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.

Editorial method and corrections

Degrees of Satoshi editorial project. “What is Ethereum? A shared network for running programs.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-ethereum/