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Ethereum

Ethereum guides for beginners: smart contracts, what Ethereum is used for, how gas fees work, staking ETH, and how layer 2 networks make transactions cheaper.

These Ethereum for beginners guides explain the second-largest blockchain and why it matters: Ethereum is a programmable network where anyone can deploy smart contracts, code that runs automatically when conditions are met. Those contracts power stablecoins, decentralized exchanges, lending apps and NFTs. ETH, the network’s native coin, pays for transactions and secures the network through staking.

Start here

  1. Ethereum explained: the complete overview.
  2. What is Ethereum used for? Real examples.
  3. Ethereum gas fees and how to pay less.
  4. Ethereum layer 2 explained.
  5. Ethereum staking: rewards and risks.
  6. Bitcoin vs Ethereum: key differences.

Key concepts

Smart contracts

A smart contract is a program stored on the blockchain. Once deployed, it runs exactly as written, which makes it transparent but also means bugs can be exploited and are hard to fix.

Gas fees

Every action on Ethereum costs gas, a measure of computation. Since 2021, each transaction pays a base fee, which is burned, plus an optional tip to validators. Fees rise when the network is busy.

Proof of stake

Ethereum switched from mining to proof of stake in September 2022 (the Merge). Validators lock up 32 ETH to run a validator and earn rewards; smaller holders can stake through pools or exchanges.

Layer 2 networks

Rollups process transactions off the main chain and post compressed data back to Ethereum, cutting fees for users while relying on Ethereum for security.

ETH supply

Unlike Bitcoin, ETH has no fixed maximum supply. New ETH is issued to validators, while the base-fee burn removes some ETH. Whether total supply grows or shrinks over a period depends on how busy the network is.

Risk note

ETH is volatile, smart contracts can fail, and staking can involve lockups, slashing penalties and platform risk. See the crypto hub for wallet and security basics before you use any app.

Ethereum: frequently asked questions

What is the difference between Ethereum and ETH?

Ethereum is the network and its software; ETH (ether) is the native coin used to pay gas fees and to stake. People often use the names interchangeably. Tokens such as stablecoins also run on Ethereum but are not ETH.

Why are Ethereum gas fees sometimes high?

Block space is limited, so when many people want to transact at once, the base fee rises automatically. Complex actions such as swaps use more gas than a simple transfer. Layer 2 networks and transacting at quieter times can reduce costs.

Do I need 32 ETH to stake?

Only to run your own validator. You can stake smaller amounts through staking pools, liquid staking protocols or exchanges, which come with their own fees and risks. Check lockup and withdrawal terms before you stake.