{"id":3909,"date":"2025-04-16T14:56:58","date_gmt":"2025-04-16T13:56:58","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=3909"},"modified":"2025-04-28T05:10:35","modified_gmt":"2025-04-28T04:10:35","slug":"learn-crypto-ethereum","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/learn\/crypto\/ethereum\/","title":{"rendered":"Ethereum (ETH): what is it, how does it work and what is it used for in 2026?"},"content":{"rendered":"\n

What is Ethereum?<\/strong><\/h2>\n\n\n\n

Ethereum is a complete blockchain platform launched in 2015 by Vitalik Buterin. Unlike Bitcoin which focuses on financial transactions, Ethereum enables the development of decentralized applications through smart contracts<\/strong>, autonomous programs that execute automatically when certain conditions are met.<\/p>\n\n\n\n

Ether (ETH), Ethereum’s native cryptocurrency, plays a dual role: as a tradable digital asset and as “fuel” necessary to run applications on the network. With its ability to process transactions in just 10 seconds<\/strong> (compared to 10 minutes for Bitcoin) and its technical flexibility, Ethereum has established itself as the second-largest cryptocurrency by market capitalization.<\/p>\n\n\n\n

Ethereum’s true revolution lies in its vision: creating a decentralized global infrastructure<\/strong> where applications, contracts, and value exchanges exist without intermediaries or central authorities.<\/p>\n\n\n\n

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The History of Ethereum<\/strong><\/h3>\n\n\n\n

Ethereum’s history begins in 2013 with the publication of the whitepaper by Vitalik Buterin, who was frustrated by Bitcoin’s limitations. The project took shape in 2014 at the Bitcoin<\/a> conference in Miami, where Buterin partnered with developers like Gavin Wood and Joseph Lubin. An ICO raised $18 million<\/strong> to fund development.<\/p>\n\n\n\n

\"What<\/figure>\n\n\n\n

July 30, 2015 marked the launch of the “Frontier” mainnet. In 2016, The DAO hack ($60 million stolen) led to a controversial hard fork<\/strong> that gave birth to Ethereum Classic. The following years saw major updates such as “Homestead” (2016) and “Metropolis” (2017-2019).<\/p>\n\n\n\n

Summer 2020 was marked by the explosion of DeFi<\/a><\/strong>, followed in 2021 by the rise of NFTs<\/a>. September 2022 represented a turning point with “The Merge,” the transition to Proof of Stake which reduced energy consumption by 99%. In 2024, the approval of Ethereum Spot ETFs and Donald Trump’s election propelled ETH to $4,092 in March.<\/p>\n\n\n\n

Who is Vitalik Buterin, One of Ethereum’s Creators?<\/strong><\/h3>\n\n\n\n

Born in Russia in 1994 and emigrating to Canada at age six, Vitalik Buterin is a computer science prodigy. At 17, he discovered Bitcoin and co-founded Bitcoin Magazine in 2011. Frustrated by Bitcoin’s limitations, he published Ethereum’s whitepaper in 2013<\/strong>, at just 19 years old.<\/p>\n\n\n\n

His vision: to create a decentralized “world computer”<\/strong> capable of executing any program without central authority. Unlike many tech entrepreneurs, Buterin advocates for values of decentralization and accessibility rather than simply pursuing profit. Despite his considerable fortune, he maintains a modest lifestyle and reinvests in research. In 2021, he donated one billion dollars in SHIB tokens to fight COVID in India. At 31, his influence extends far beyond Ethereum<\/strong> to mark the history of technological innovation.<\/p>\n\n\n\n

What is Ethereum 2.0?<\/strong><\/h3>\n\n\n\n

Ethereum 2.0, now fully operational, represents a major evolution with the abandonment of Proof of Work in favor of Proof of Stake, made official in September 2022 during “The Merge.” This transition reduced energy consumption by 99%<\/strong> while preparing the ground for future improvements.<\/p>\n\n\n\n

Development began in December 2020 with the “Beacon Chain,”<\/strong> introducing ETH staking. This architecture allows holders to participate in network security by locking their tokens rather than using energy-intensive mining equipment.<\/p>\n\n\n\n

The future of Ethereum 2.0 looks promising with “sharding”<\/strong> which will divide the blockchain into fragments capable of processing transactions in parallel, significantly increasing network throughput to compete with traditional payment systems.<\/p>\n\n\n\n

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What is Ethereum Used For?<\/strong><\/h2>\n\n\n\n

Ethereum has revolutionized the crypto universe by introducing a programmable blockchain platform. Its smart contracts allow for the creation of autonomous applications that execute without intermediaries, such as insurance contracts<\/strong> that trigger automatically.<\/p>\n\n\n\n

Decentralized finance (DeFi) represents one of the most transformative applications, with protocols like Aave or Uniswap democratizing access to financial services. ERC-20 tokens have facilitated the creation of thousands of specialized cryptocurrencies, while NFTs have transformed our conception<\/strong> of digital ownership.<\/p>\n\n\n\n

DAOs (Decentralized Autonomous Organizations) enable transparent governance without centralized hierarchy. Decentralized identity, blockchain games, and tokenization of real assets constitute other promising use cases. Ethereum also serves as a base layer for Web3<\/strong>, this new iteration of the internet where users control their data.<\/p>\n\n\n\n

How Does the Ethereum Network Work?<\/strong><\/h2>\n\n\n\n

The Ethereum network functions as a decentralized global computing system, relying on thousands of nodes that maintain a copy of the blockchain. Since “The Merge,” Ethereum uses Proof of Stake<\/strong>: validators, who have staked at least 32 ETH, are randomly selected to propose and validate blocks.<\/p>\n\n\n\n

\"Digital<\/figure>\n\n\n\n

Gas fees measure the computational cost of operations and have been optimized with EIP-1559 (August 2021), which introduces a “burning” mechanism<\/strong> creating deflationary pressure on ETH. The EVM (Ethereum Virtual Machine) enables smart contracts to execute deterministically across all nodes.<\/p>\n\n\n\n

To solve scalability limitations, “layer 2”<\/strong> solutions like rollups execute transactions off-chain while inheriting Ethereum’s security, multiplying throughput while reducing fees.<\/p>\n\n\n\n

The Ethereum Blockchain<\/strong><\/h3>\n\n\n\n

The Ethereum blockchain distinguishes itself by its ability to store and execute code through the EVM<\/strong>, a Turing-complete virtual machine. This fundamental characteristic paved the way for smart contracts and decentralized applications that now constitute its ecosystem.<\/p>\n\n\n\n

Since its creation, Ethereum has undergone several major updates, culminating with “The Merge” in 2022. In terms of performance, the blockchain processes approximately 15-30 transactions per second<\/strong> on its base layer, complemented by layer 2 solutions that enable thousands of transactions per second.<\/p>\n\n\n\n

Its security now relies on Proof of Stake, with more than 30 million ETH staked ($90 billion). Interoperability constitutes another major asset thanks to standards like ERC-20 for fungible tokens<\/strong> or ERC-721 for NFTs, creating an ecosystem where different applications interact seamlessly.<\/p>\n\n\n\n

The Consensus Algorithm<\/strong><\/h3>\n\n\n\n

The evolution of Ethereum’s consensus algorithm represents one of the most significant transformations in cryptocurrency history. At its beginnings, Ethereum used Proof of Work, requiring colossal energy consumption<\/strong> and favoring mining centralization.<\/p>\n\n\n\n

The transition to Proof of Stake, realized in September 2022 with “The Merge,” reduced energy consumption by 99%. In this system, validators stake at least 32 ETH and are randomly selected to validate blocks, with a probability proportional to their stake<\/strong>.<\/p>\n\n\n\n

This mechanism improves security through a system of incentives and penalties: honest validators are rewarded, while fraudsters risk losing their staked ETH. Decentralization is strengthened by lowering barriers to entry<\/strong>, and Ethereum’s economy has been modified with a significant reduction in the emission rate.<\/p>\n\n\n\n

Network Security<\/strong><\/h3>\n\n\n\n

Ethereum’s security rests on several fundamental pillars. Proof of Stake creates a strong economic incentive to follow the rules: with more than 30 million ETH staked<\/strong> ($90 billion), the cost of an attack is prohibitive.<\/p>\n\n\n\n

Advanced cryptography (ECDSA for signatures, Keccak-256 for hashing) and distributed consensus reinforce this security. For smart contracts, the ecosystem has developed rigorous practices<\/strong> for auditing and formal analysis tools that mathematically verify their behavior. Hardware wallets and multi-signature<\/strong> solutions offer additional protections for users.<\/p>\n\n\n\n

Compared to other blockchains, Ethereum benefits from enhanced security thanks to its wide decentralization and active community of auditors, although future challenges include protection against quantum attacks.<\/p>\n\n\n\n

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Open an account to trade ETH<\/a><\/div>\n<\/div>\n\n\n\n

Advantages and Disadvantages of Ethereum<\/strong><\/h2>\n\n\n\n

Advantages<\/strong><\/h3>\n\n\n\n

Ethereum benefits from a mature ecosystem with thousands of applications, growing institutional adoption (Spot ETFs approved in 2024), an unmatched developer community, and proven security<\/strong>. Its ability to evolve has been demonstrated by major updates like “The Merge.”<\/p>\n\n\n\n

Disadvantages<\/strong><\/h3>\n\n\n\n

High transaction fees during periods of high demand sometimes make the platform inaccessible to small users. Scalability limitations persist despite improvements, with only 15-30 transactions per second<\/strong> on the base layer. Technical complexity constitutes a barrier to entry, while competition intensifies with blockchains like Solana offering faster and less costly transactions.<\/p>\n\n\n\n

Threats<\/strong><\/h3>\n\n\n\n

The expansion of DeFi, tokenization of real assets, and development of Web3 represent considerable opportunities. However, technological competition, fragmentation of the ecosystem between layer 1 and layer 2, and regulatory risks<\/strong> constitute threats to monitor.<\/p>\n\n\n\n

The Price and Predictions of Ether<\/strong><\/h2>\n\n\n\n

Since its launch at around $1 in 2015, ETH has experienced a remarkable trajectory, reaching an all-time high of $4,800 in November 2021. After the crypto winter of 2022, ETH is trading around $1,600 in April 2025, having recovered much of its value.<\/p>\n\n\n\n

The approval of Ethereum Spot ETFs in 2024 and Donald Trump’s election had a significant impact, with record inflows into these financial products. Factors influencing the price include institutional adoption<\/strong>, technical developments like the transition to PoS, competition from other blockchains, and the macroeconomic context. For 2025, experts anticipate a price of around $10,000<\/strong>, reflecting the impact of continuous innovations. Longer term, some analysts envision up to $170,000 by 2030, although these projections remain speculative.<\/p>\n\n\n\n

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Important Moments in Ethereum’s History<\/strong><\/h2>\n\n\n\n

Ethereum’s history is marked by significant events that have shaped its evolution and defined its trajectory. Each of these key moments illustrates Ethereum’s capacity to innovate and overcome challenges.<\/p>\n\n\n\n

The Whitepaper Publication (November 2013)<\/strong><\/h3>\n\n\n\n

Vitalik Buterin, then only 19 years old, published the Ethereum whitepaper, presenting his revolutionary vision of a programmable blockchain. Frustrated by Bitcoin’s limitations, he imagined a platform capable of executing complex decentralized applications<\/strong> beyond simple monetary transactions. This founding document laid the intellectual foundations for a technology that would transform the blockchain ecosystem.<\/p>\n\n\n\n

The Historic Fundraising (July-August 2014)<\/strong><\/h3>\n\n\n\n

Ethereum’s ICO (Initial Coin Offering) raised about $18 million in Bitcoin, a considerable amount for the time. This public token sale funded the project’s development and demonstrated early interest in this ambitious vision<\/strong>. Participants received ETH at about $0.30 per unit, an investment that would prove extraordinarily profitable.<\/p>\n\n\n\n

The Launch of Frontier (July 30, 2015)<\/strong><\/h3>\n\n\n\n

Ethereum’s mainnet was officially launched with its first version, dubbed “Frontier.” Although rudimentary and primarily aimed at developers, this initial version marked Ethereum’s transition from theoretical concept to operational reality<\/strong>. For the first time, smart contracts could be deployed on a public blockchain with a Turing-complete programming language.<\/p>\n\n\n\n

The DAO Hack and the Birth of Ethereum Classic (June 2016)<\/strong><\/h3>\n\n\n\n

A traumatic event shook the young community: The DAO hack, a pioneering decentralized finance project that had raised $150 million. A flaw in its code allowed an attacker to divert approximately $60 million in ETH<\/strong>. Faced with this crisis, the community split on how to respond.<\/p>\n\n\n\n

\"Ethereum<\/figure>\n\n\n\n

The majority opted for a “hard fork” to recover the stolen funds, while a minority, attached to the principle of immutability, maintained the original chain under the name Ethereum Classic (ETC). This fundamental split raised deep philosophical questions about blockchain governance.<\/p>\n\n\n\n

The Homestead Update (March 2016)<\/strong><\/h3>\n\n\n\n

First major update to Ethereum, “Homestead”<\/strong> improved the stability and security of the network. This crucial step in the platform’s maturation introduced several technical optimizations and signaled growing confidence in the protocol’s robustness.<\/p>\n\n\n\n

The ICO Explosion (2017)<\/strong><\/h3>\n\n\n\n

2017 saw the emergence of the Initial Coin Offering<\/strong> phenomenon on Ethereum. Hundreds of projects collectively raised billions of dollars by issuing ERC-20 tokens, demonstrating Ethereum’s power as a decentralized funding platform. This financial innovation, although controversial and sometimes tainted by scams, democratized access to capital for blockchain startups and propelled Ethereum adoption.<\/p>\n\n\n\n

DeFi Summer (Summer 2020)<\/strong><\/h3>\n\n\n\n

Summer 2020 marked the explosion of decentralized finance (DeFi) on Ethereum. Protocols like Uniswap, Aave, or Compound revolutionized traditional financial services by offering decentralized alternatives for exchanging, lending, or borrowing cryptocurrencies. The total value locked<\/strong> (TVL) in these protocols went from a few hundred million to several tens of billions of dollars in a few months, driving Ethereum adoption while highlighting its scalability challenges.<\/p>\n\n\n\n

The Implementation of EIP-1559 (August 2021)<\/strong><\/h3>\n\n\n\n

The EIP-1559 improvement proposal introduced a revolutionary mechanism for managing transaction fees. This update fundamentally changed Ethereum’s economy by “burning” part of the fees instead of giving them to miners<\/strong>, thus creating deflationary pressure on ETH. This innovation also improved transaction fee predictability, partially solving one of the most frustrating problems for users.<\/p>\n\n\n\n

The Merge (September 15, 2022)<\/strong><\/h3>\n\n\n\n

September 15, 2022 marked a decisive turning point with “The Merge,” the transition from the Proof of Work<\/strong> (PoW) consensus mechanism to Proof of Stake<\/strong> (PoS). This historic update, prepared for years, reduced the network’s energy consumption by more than 99%, addressing environmental concerns while paving the way for future scalability improvements. The Merge represents one of the most complex technical transformations ever performed on an active blockchain network.<\/p>\n\n\n\n

The Approval of Ethereum Spot ETFs (May 2024)<\/strong><\/h3>\n\n\n\n

In May 2024, the United States Securities and Exchange Commission (SEC) approved the first Ethereum Spot ETFs, allowing traditional investors to expose their portfolios to ETH without having to directly manage cryptocurrencies.<\/p>\n\n\n\n

This historic decision, following the approval of Bitcoin Spot ETFs in late 2023<\/strong>, marked a crucial step in Ethereum’s institutionalization. The first days of trading saw record inflows of more than $215 million, testifying to institutional interest in this asset class.<\/p>\n\n\n\n

The Impact of Donald Trump’s Election (November 2024)<\/strong><\/h3>\n\n\n\n

Donald Trump’s election for a second term in November 2024 had a notable impact on the cryptocurrency market, including Ethereum. His administration, perceived as favorable to innovation in the crypto sector, inspired investor confidence. This positive perception, combined with the anticipation of clearer and less restrictive regulation<\/strong>, contributed to a significant rise in ETH’s price, which reached a peak of $4,092 in March 2025.<\/p>\n\n\n\n

These key moments illustrate Ethereum’s extraordinary journey, from its visionary conception to its current status as an essential infrastructure of the decentralized digital economy. Each stage testifies to this revolutionary technology’s capacity for adaptation and innovation<\/strong>, as well as the strength of its community in facing technical, economic, and regulatory challenges.<\/p>\n\n\n\n

How and Where to Buy Ethereum (ETH)?<\/strong><\/h2>\n\n\n\n

To buy Ethereum<\/strong> (ETH), several options are available to you in 2026, from centralized exchanges<\/a> to traditional brokers. Here’s a comprehensive guide to help you make the best choice according to your profile.<\/p>\n\n\n\n

Exchanges vs Brokers: What’s the Difference?<\/strong><\/h3>\n\n\n\n

Centralized exchanges<\/strong> like Bitget, Binance, or Weex are platforms specialized in cryptocurrencies where you actually buy and hold your ETH. You can transfer them to personal wallets, use them in decentralized applications, or stake them to generate yields.<\/p>\n\n\n\n

\"The
The evolution of Ethereum (ETH) price over time.<\/figcaption><\/figure>\n\n\n\n

Traditional brokers<\/strong> like eToro and Vantage now offer ETH as an investment product among others. While more familiar to traditional investors, they generally offer fewer features and don’t always allow withdrawing your cryptocurrencies to external wallets.<\/p>\n\n\n\n

For a true crypto experience and total ownership of your assets, centralized or decentralized exchanges are recommended. You truly own your tokens there, unlike with some brokers where you only buy exposure to the price.<\/p>\n\n\n\n

The Best Platforms to Buy Ethereum<\/strong><\/h3>\n\n\n\n

Bitget<\/strong> stands out as one of the most comprehensive options in 2026. This platform combines enhanced security, intuitive interface, and competitive fees (0.1% per transaction). Particularly suitable for beginners and experienced users alike, Bitget allows you to buy ETH directly with a bank card in just minutes.<\/p>\n\n\n\n

Binance<\/strong> remains the reference in terms of liquidity and trading volume, offering the tightest spreads in the market. The platform also offers flexible and fixed savings options to grow your ETH.<\/p>\n\n\n\n

Weex<\/strong> distinguishes itself by its youth with an innovative interface, ease of use, and competitive fees. For advanced users, Weex offers sophisticated trading features and relevant security.<\/p>\n\n\n\n

Buying ETH on Bitget in 5 Steps<\/strong><\/h3>\n\n\n\n
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  1. Registration<\/strong>: Create an account on Bitget by providing your email and a secure password. Activate two-factor authentication (2FA) immediately.<\/li>\n\n\n\n
  2. KYC Verification<\/strong>: Complete the identity verification procedure by uploading an ID and proof of address. This step is mandatory for significant deposits.<\/li>\n\n\n\n
  3. Fund Deposit<\/strong>: Click on “Deposit” and choose your preferred method. The fastest option is direct purchase by bank card, but SEPA transfers offer reduced fees.<\/li>\n\n\n\n
  4. Buying ETH<\/strong>: In the “Spot” section, search for the ETH\/EUR or ETH\/USDT pair. Enter the desired amount and confirm your purchase. You can choose a market order (immediate execution) or a limit order (at a specific price).<\/li>\n\n\n\n
  5. Security<\/strong>: Once the purchase is complete, consider transferring your ETH to a non-custodial wallet like MetaMask or a hardware wallet like Ledger for maximum security.<\/li>\n<\/ol>\n\n\n\n

    Important Considerations Before Buying<\/strong><\/h3>\n\n\n\n