Ethereum is the leading smart contract platform, serving as the foundational layer for the majority of the decentralized finance (DeFi) and NFT ecosystems. It utilizes the Ethereum Virtual Machine (EVM) to execute complex code across a distributed network of nodes. Since "The Merge" in 2022, Ethereum has operated on Proof-of-Stake (PoS), reducing its energy consumption by over 99.9% compared to its original Proof-of-Work design.

The Ethereum roadmap has focused on scaling data availability for Layer 2 rollups and improving user account flexibility:

Pectra Upgrade (May 2025): The "Prague-Electra" hard fork introduced EIP-7702, a major usability upgrade that allows standard wallets (EOAs) to temporarily function as smart contracts. This enables features like transaction batching and gas sponsorship without requiring users to migrate to new wallet addresses. The upgrade also increased the maximum validator stake from 32 ETH to 2,048 ETH, simplifying operations for large node operators.

Fusaka Upgrade (Dec 2025): In late 2025, the network activated the Fusaka upgrade, deploying PeerDAS (Peer Data Availability Sampling). This technology allows nodes to verify data availability without downloading entire "blobs," significantly increasing the data capacity available for Layer 2 rollups and reducing their transaction costs.

ETF & Institutional Access: Following the approval of Spot ETH ETFs, the asset has seen deeper integration into traditional financial products, with regulated access now available in major global markets.

Ether (ETH) is the native currency of the network and serves three primary functions:

Network Fuel (Gas): ETH is required to pay for every computation on the network. Under EIP-1559, the base fee of every transaction is burned, permanently removing it from circulation.

Staking: Users stake ETH (minimum 32 ETH for solo validators, or less via pools) to secure the network. In return, they receive rewards derived from issuance and priority transaction fees.

Collateral: ETH is the primary form of collateral used across the DeFi ecosystem to mint stablecoins or secure loans.

Learn Why Ethereum Transactions Can Be Expensive: Gas Fees Explained

Consensus: Proof-of-Stake (PoS) - Gasper

Smart Contract Engine: Ethereum Virtual Machine (EVM)

Issuance: Dynamic (Net inflation/deflation depends on burn rate)

Recent Upgrade: Fusaka (Dec 2025) - PeerDAS implementation