Ethereum is a decentralized, open-source blockchain platform used for smart contracts and decentralized applications (dApps). It was introduced in a white paper by Vitalik Buterin in 2013, and the public Ethereum network launched in 2015.
Quick takeaways
- Native asset: Ether (ETH) is used to pay transaction fees (“gas”) and interact with smart contracts. (Ethereum.org)
- Consensus today: Ethereum uses proof-of-stake after The Merge executed on September 15, 2022. (Ethereum.org)
- Common “user activity” proxy: Monthly active addresses counts unique addresses that sent at least one transaction in a rolling 30-day period. (Token Terminal)
On this page:
- What is Ethereum?
- How Ethereum works (smart contracts & EVM)
- Consensus: proof-of-stake
- Ethereum statistics (activity metrics)
- Methodology
- FAQ
- Sources & references
What is Ethereum?
Ethereum is a blockchain that can run code—enabling developers to create smart contracts and build applications that are executed and verified across a distributed network. Unlike a single company’s servers, Ethereum’s state is maintained by nodes running the Ethereum protocol.
How Ethereum works (smart contracts & the EVM)
Smart contracts are programs deployed to Ethereum that execute according to predefined rules. They run on the Ethereum Virtual Machine (EVM), which is the runtime environment that executes smart contract code across the network. (Ethereum.org (EVM))
ETH is used to pay for computation and storage (“gas”) when sending transactions or interacting with smart contracts. (Ethereum.org (ETH))
Consensus: proof-of-stake
Ethereum originally used proof-of-work, but transitioned to proof-of-stake with The Merge on September 15, 2022. Under proof-of-stake, validators propose and attest to blocks based on staked ETH. (Ethereum.org (The Merge)) (Ethereum.org (PoS))
Ethereum statistics (activity metrics)
Important note on “users”: Ethereum does not have a single, definitive “user count.” A common on-chain proxy is active addresses, which measures how many unique addresses are transacting over a period. One person can control multiple addresses, and one address can represent a contract or organization—so “active addresses” is best treated as an activity metric, not a literal count of humans.
Monthly active addresses (Ethereum):
Token Terminal monthly active addresses (definition: unique Ethereum addresses that sent at least one transaction in a rolling 30-day period)
Alternate view of monthly active addresses (Ethereum):
The Block — monthly active addresses on the Ethereum network (definition varies by provider; review methodology on the chart page)
Methodology
- Primary technical sources: Ethereum.org is used for definitions of ETH, the EVM, and proof-of-stake / The Merge.
- Activity metric for “users”: This page uses monthly active addresses as a transparent proxy for network activity, with direct links to the metric definition and chart methodology.
- No speculation: This page avoids forecasts and uses only confirmable statements supported by linked sources.
FAQ
Is Ethereum proof-of-stake?
Yes. Ethereum transitioned to proof-of-stake with The Merge on September 15, 2022. (Ethereum.org)
What is the Ethereum Virtual Machine (EVM)?
The EVM is the runtime environment that executes smart contract code across the Ethereum network. (Ethereum.org)
How do you measure Ethereum “users”?
There is no single official user count. A common on-chain proxy is active addresses (unique addresses transacting over a defined period), but it does not equal unique people. (Token Terminal)
Sources & references
- Ethereum.org — The Merge (date and proof-of-stake transition)
- Ethereum.org — Proof-of-stake (consensus mechanism overview)
- Ethereum.org — Ethereum Virtual Machine (EVM)
- Ethereum.org — ETH overview (what ETH is used for)
- Token Terminal — Monthly active addresses (definition + chart)
- The Block — Monthly active address metric (chart + methodology notes)