# What is Ethereum? A shared network for running programs 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. Evidence: [Introduction to Ethereum](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ethereum/index.md); [Proof of stake](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/consensus-mechanisms/pos/index.md); [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) Canonical: https://degreesofsatoshi.com/encyclopedia/what-is-ethereum/ Published: 2026-10-02 Substantively modified: 2026-10-02 Independently verified by an automated reviewer: 2026-10-02T15:10:23.134Z AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied. ## Key facts - **Network:** A shared state and rules for changing it ([Introduction to Ethereum](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ethereum/index.md); [Ethereum Virtual Machine](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/evm/index.md)) - **Native asset:** Ether, abbreviated ETH ([Introduction to ether](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ether/index.md)) - **Consensus:** Proof of stake ([Proof of stake](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/consensus-mechanisms/pos/index.md)) ## 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. Evidence: [Introduction to Ethereum](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ethereum/index.md); [Ethereum Virtual Machine](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/evm/index.md) ## 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. Evidence: [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md); [Ethereum transactions](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/transactions/index.md) ## 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. Evidence: [Ethereum accounts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/accounts/index.md); [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md); [Introduction to ether](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ether/index.md) ## 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. Evidence: [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md); [Proof of stake](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/consensus-mechanisms/pos/index.md) ## Questions ### 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. Evidence: [Introduction to Ethereum](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ethereum/index.md); [Introduction to ether](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ether/index.md) ### 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. Evidence: [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) ### 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. Evidence: [Introduction to Ethereum](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ethereum/index.md); [Ethereum transactions](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/transactions/index.md) ## Claims and scope ### what-is-ethereum-quick-answer 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: {"collection":"ethereum","dataAsOf":null,"blockHeight":null} ### what-is-ethereum-fact-network Network: A shared state and rules for changing it Scope: {"collection":"ethereum","dataAsOf":null,"blockHeight":null} ### what-is-ethereum-fact-native-asset Native asset: Ether, abbreviated ETH Scope: {"collection":"ethereum","dataAsOf":null,"blockHeight":null} ### what-is-ethereum-fact-consensus Consensus: Proof of stake Scope: {"collection":"ethereum","dataAsOf":null,"blockHeight":null} ## Sources - [Introduction to Ethereum](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ethereum/index.md) — ethereum.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. Retrieved: 2026-10-02T14:35:40.358654+00:00. - [Proof of stake](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/consensus-mechanisms/pos/index.md) — ethereum.org contributors. Supports 12-second slots, 32-slot epochs, stake-weighted checkpoint voting and block verification. Locator: Validators; transaction execution; finality; fork choice. Retrieved: 2026-10-02T14:35:43.818781+00:00. - [Introduction to smart contracts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/smart-contracts/index.md) — ethereum.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. Retrieved: 2026-10-02T14:35:40.398357+00:00. - [Ethereum Virtual Machine](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/evm/index.md) — ethereum.org contributors. Supports deterministic execution, opcodes and the distinction between temporary execution memory and persistent state. Locator: State transition function; EVM instructions; storage. Retrieved: 2026-10-02T14:35:40.399163+00:00. - [Introduction to ether](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/intro-to-ether/index.md) — ethereum.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. Retrieved: 2026-10-02T14:42:49.460408+00:00. - [Ethereum transactions](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/transactions/index.md) — ethereum.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. Retrieved: 2026-10-02T14:35:40.399251+00:00. - [Ethereum accounts](https://raw.githubusercontent.com/ethereum/ethereum-org-website/dcc900ff125891da5b6c723b905a7113cf1bd864/public/content/developers/docs/accounts/index.md) — ethereum.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. Retrieved: 2026-10-02T14:35:40.369782+00:00. ## Revision history - 2026-10-02: First publication after primary-source research and independent automated verification. ## Cite this entry 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/