# what is ETH?

By [crypto devil](https://paragraph.com/@crypto-devil) · 2022-05-17

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**Ethereum** is a [decentralized](https://en.wikipedia.org/wiki/Decentralization), [open-source](https://en.wikipedia.org/wiki/Open-source_software) [blockchain](https://en.wikipedia.org/wiki/Blockchain) with [smart contract](https://en.wikipedia.org/wiki/Smart_contract) functionality. **Ether** (**ETH** or **Ξ**) is the native [cryptocurrency](https://en.wikipedia.org/wiki/Cryptocurrency) of the platform. Among cryptocurrencies, Ether is second only to [Bitcoin](https://en.wikipedia.org/wiki/Bitcoin) in [market capitalization](https://en.wikipedia.org/wiki/Market_capitalization).

Ethereum was conceived in 2013 by programmer [Vitalik Buterin](https://en.wikipedia.org/wiki/Vitalik_Buterin).Additional founders of Ethereum included [Gavin Wood](https://en.wikipedia.org/wiki/Gavin_Wood), [Charles Hoskinson](https://en.wikipedia.org/wiki/Charles_Hoskinson), [Anthony Di Iorio](https://en.wikipedia.org/wiki/Anthony_Di_Iorio) and [Joseph Lubin](https://en.wikipedia.org/wiki/Joseph_Lubin_\(entrepreneur\)). In 2014, [development](https://en.wikipedia.org/wiki/Software_development) work began and was [crowdfunded](https://en.wikipedia.org/wiki/Crowdfunding), and the network went live on 30 July 2015. Ethereum allows anyone to deploy permanent and immutable [decentralized applications](https://en.wikipedia.org/wiki/Decentralized_application) onto it, with which users can interact. [Decentralized finance](https://en.wikipedia.org/wiki/Decentralized_finance) (DeFi) applications provide a broad array of financial services without the need for typical [financial intermediaries](https://en.wikipedia.org/wiki/Financial_intermediary) like [brokerages](https://en.wikipedia.org/wiki/Brokerage), [exchanges](https://en.wikipedia.org/wiki/Exchange_\(organized_market\)), or [banks](https://en.wikipedia.org/wiki/Bank), such as allowing cryptocurrency users to borrow against their holdings or lend them out for [interest](https://en.wikipedia.org/wiki/Interest). Ethereum also allows users to create and exchange [NFTs](https://en.wikipedia.org/wiki/Non-fungible_token), which are unique tokens representing ownership of an associated asset or privilege, as recognized by any number of institutions. Additionally, many other cryptocurrencies utilize the [ERC-20 token standard](https://ethereum.org/en/developers/docs/standards/tokens/erc-20/) on top of the Ethereum blockchain and have utilized the platform for [initial coin offerings](https://en.wikipedia.org/wiki/Initial_coin_offering).

A series of upgrades called Ethereum 2.0 includes a transition to [proof of stake](https://en.wikipedia.org/wiki/Proof_of_stake) and aims to increase transaction [throughput](https://en.wikipedia.org/wiki/Throughput) by using [sharding](https://en.wikipedia.org/wiki/Shard_\(database_architecture\)).

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*Originally published on [crypto devil](https://paragraph.com/@crypto-devil/what-is-eth)*