ETH

ETH is the native cryptocurrency of the Ethereum blockchain, serving as the primary medium of exchange within the network. Users must pay transaction fees, commonly called "gas," in ETH to execute smart contracts and transfer assets. Beyond transactional utility, ETH functions as a store of value and enables staking, where holders lock their tokens to validate transactions and secure the network in exchange for rewards. The supply of ETH is not fixed, though it is subject to inflation controls through protocol mechanics. ETH holders gain voting rights in governance decisions that shape Ethereum's future development. Example: When a user interacts with Uniswap, a decentralized exchange on Ethereum, they pay transaction fees in ETH to swap tokens. Validators who stake ETH also earn additional ETH rewards for securing the network, creating economic incentives for participation in Ethereum's proof-of-stake consensus mechanism. Why it matters for cryptocurrency: ETH is essential infrastructure for accessing Ethereum's ecosystem and represents one of the largest cryptocurrencies by market capitalization. Its dual role as both a utility token and store of value makes it central to DeFi, NFTs, and broader blockchain adoption.

Category: cryptocurrency types

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