> ## Content Index > Fetch the complete content index at: https://zipmex.com/llms.txt > Use this file to discover other available public pages before exploring further. # What Is Ethereum? How the Network, Ether and Smart Contracts Work - URL: https://zipmex.com/blog/what-is-ethereum-how-the-network-ether-and-smart-contracts-work/ - Published: 2026-10-17T08:43:12.000Z - Updated: 2026-10-17T08:51:50.000Z - Description: Ethereum in plain English: the network, its asset ether, smart contracts, gas fees, a stake of at least 32 ETH, and dated milestones from 2013 to 2022. - Author: ZIPMEX - Tags: Crypto, #zipmex-newsroom Ethereum is a decentralized, open-source blockchain network built to host smart contracts and decentralized applications (dApps), with ether (ETH) as its native asset. Ledger's beginner guide, updated May 28, 2026, defines it that way. Ether pays for transactions and is staked to secure the network. It also powers apps in decentralized finance (DeFi), non-fungible tokens (NFTs) and onchain governance. **Key facts** - **Network:** A decentralized, open-source blockchain for smart contracts and dApps. - **Asset:** Ether (ETH) pays transaction fees and secures the network through staking. - **Security:** Proof of stake since Sept. 15, 2022\. Validators lock at least 32 ETH as collateral. - **Control:** No CEO, board or single controlling party. - **Speed:** About 15 transactions per second, per Decrypt's guide. Ethereum: key figures and limits/ KEY FACTSEthereum: key figures and limitsVALIDATOR STAKELedger's guide says Ethereum requires a minimum stake of32 ETH, which acts as collateral.HACK LOSSethereum.org says an insecure contract was drained of over3.6 million ETH in a hack.THROUGHPUTDecrypt says Ethereum handles about 15 transactions persecond and cannot match Visa's tens of thousands.Source: ledger.com; ethereum.org; decrypt.co ![Three-fact card. Ethereum requires a minimum stake of 32 ETH, which acts as collateral. An insecure contract was drained of over 3.6 million ETH in a hack. Ethereum handles about 15 transactions per second and cannot match Visa's tens of thousands.](https://storage.ghost.io/c/d4/f3/d4f34881-0300-4bbe-b8df-78a26d28be4d/content/images/2026/10/zipmex-c423790d466a45b2.png) Original ZIPMEX key-facts diagram with three figures on Ethereum: a minimum stake of 32 ETH as collateral, over 3.6 million ETH drained in a hack, and about 15 transactions per second. · ZIPMEX diagram; data: ledger.com, ethereum.org, decrypt.co ## Where it ranks Decrypt's beginner guide calls Ethereum the second-biggest cryptocurrency after Bitcoin. It also describes the network as a platform for creating decentralized applications, often shortened to dapps. A separate explainer covers [how to buy NFTs](https://zipmex.com/blog/how-to-buy-nfts/), one of the app types that run on the network. ## How a smart contract runs Ledger's guide credits Ethereum with pioneering **smart contract**s. A smart contract is self-executing code. It runs instructions on the blockchain once set conditions are met. The Ethereum Virtual Machine (EVM) is the computing engine and runtime environment where that code executes. The whitepaper on ethereum.org proposed "a blockchain with a built-in fully fledged Turing-complete programming language." The page notes the paper came out before Ethereum launched. ## How fast it is Decrypt's guide puts Ethereum at [about 15 transactions per second](https://decrypt.co/resources/what-is-ethereum-quickly-explained-four-minute-guide?ref=zipmex.com). It says that pace cannot match Visa's tens of thousands. ## Gas fees: what every transfer costs Ledger's guide says every transfer of value on Ethereum needs a network fee paid in ETH. Validators receive it for processing the transaction. This fee is called a gas fee. Fees are paid in ETH, so anyone who wants to send value needs some ETH in their wallet first. ## Proof of stake: who keeps the network honest Ethereum switched from proof of work to proof of stake in an upgrade called The Merge. The project's site, ethereum.org, says The Merge was completed on Sept. 15, 2022\. Ledger's guide explains the security model that followed. A validator must lock at least 32 ETH as collateral. Decrypt gives the same minimum. A validator that harms the network loses part of that stake. That penalty is called **slashing**. ## From idea to The Merge Ethereum's own site, ethereum.org, dates the main steps from the first idea to The Merge in 2022\. Its history page says [Vitalik Buterin conceived Ethereum in late 2013](https://ethereum.org/ethereum-history-founder-and-ownership/?ref=zipmex.com). The whitepaper page gives a separate date for the paper itself: published in 2014, before Ethereum launched. The main network went live on July 30, 2015, when the founding team mined the genesis block. ## Ethereum from idea to The Merge How did Ethereum get from an idea to proof of stake? Step through five dated milestones. 1. Late 2013**The idea**done Vitalik Buterin conceives Ethereum, according to the project's history page. Source: [History of Ethereum: founder, launch and ownership | ⁦ethereum.org⁩ (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/ethereum-history-founder-and-ownership/?ref=zipmex.com) 2. 2014**The whitepaper**done The whitepaper page dates the paper to 2014, before launch. It proposes a blockchain with a built-in Turing-complete programming language. Source: [Ethereum Whitepaper | ethereum.org (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/whitepaper/?ref=zipmex.com) 3. July 30, 2015**Mainnet launch**done The founding team mines the genesis block and the main network goes live. Source: [History of Ethereum: founder, launch and ownership | ⁦ethereum.org⁩ (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/ethereum-history-founder-and-ownership/?ref=zipmex.com) 4. 2016**The DAO attack**done An attack drains over 3.6 million ETH from an insecure contract. Source: [Ethereum Governance | ethereum.org (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/governance/?ref=zipmex.com) 5. Sept. 15, 2022**The Merge**done The Beacon Chain merges with the Ethereum execution layer. Ethereum moves from proof of work to proof of stake. Source: [Ethereum Governance | ethereum.org (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/governance/?ref=zipmex.com) · [What is Ethereum? The Ultimate Beginner's Guide (ledger.com), accessed Oct 14, 2026](https://www.ledger.com/academy/what-is-ethereum?ref=zipmex.com) Dates come from the project's own undated pages, the idea and the whitepaper carry separate dates, and the 2016 attack is dated to the year only. ## Who runs Ethereum The project's history page says Ethereum has no CEO, board or single controlling party. Its community governs it. The non-profit Ethereum Foundation provides support. ## Where the risks are Ledger's guide says: "The same programmability that makes Ethereum powerful also makes it a target for attackers, scam contracts, and look-alike dApps." The danger showed up early. In 2016, according to ethereum.org, an attack on The DAO [drained over 3.6 million ETH](https://ethereum.org/governance/?ref=zipmex.com) from one insecure contract. 3.6 millionThe 2016 DAO attack drained over 3.6 million ETH from an insecure contract. Source: ethereum.org · [Read the source](https://ethereum.org/governance/?ref=zipmex.com) ## Analysis: Ethereum trades speed for programmability A pace of about 15 transactions per second, as Decrypt reports it, is slow next to a card network. The trade is programmability, and programmability also explains the risk record. A user who calls a contract relies on that contract's code. A stake of at least 32 ETH, and slashing, give validators a reason to follow the network's rules. The stake and slashing cover validator conduct, not the code of a contract a user calls. ## What the sources do not say Several definitions come from Ledger, a wallet maker that sells its own products. The text of Decrypt's guide states no publication date, so its ranking and its speed figure are undated. None of these sources states a current gas fee. The whitepaper details come from the first part of that long document. ## Before your next transfer Ethereum's own site, ethereum.org, is the place to go deeper. Its whitepaper page keeps the original 2014 design, published before launch. Its history page covers the founder and the July 30, 2015 launch. Before you send ETH or use a new app, check the network fee you will pay in ETH. Also check that the app and contract are the official ones, since scam contracts and look-alike dApps exist. Sources: [What is Ethereum? The Ultimate Beginner's Guide (ledger.com), accessed Oct 14, 2026](https://www.ledger.com/academy/what-is-ethereum?ref=zipmex.com) · [Ethereum Governance | ethereum.org (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/governance/?ref=zipmex.com) · [Decrypt, accessed Oct 14, 2026](https://decrypt.co/resources/what-is-ethereum-quickly-explained-four-minute-guide?ref=zipmex.com) · [History of Ethereum: founder, launch and ownership | ⁦ethereum.org⁩ (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/ethereum-history-founder-and-ownership/?ref=zipmex.com) · [Ethereum Whitepaper | ethereum.org (ethereum.org), accessed Oct 14, 2026](https://ethereum.org/whitepaper/?ref=zipmex.com) Promotion · ZIPMEX ### Trade **Ether** perpetuals on ZIPMEX 135 marketsCrypto · stocks · gold · oil · FXPTS on every tradePTS → ZIPMEX tokens [Trade ETH-PERP](https://trade.zipmex.com/perps/PERP%5FETH%5FUSDC?utm%5Fsource=zipmex-news&utm%5Fcampaign=perps&utm%5Fmedium=article&utm%5Fcontent=story-190333) long or short · 24/7 [See all markets](https://trade.zipmex.com/perps/markets?utm%5Fsource=zipmex-news&utm%5Fcampaign=perps&utm%5Fmedium=article&utm%5Fcontent=story-190333) 135 markets on trade.zipmex.com Perpetual futures are leveraged derivatives. Prices can move fast and you can lose all of your margin. Not available in every jurisdiction. Not investment advice. ZIPMEX promotes trading on trade.zipmex.com. Promotions are labelled and kept separate from news coverage, which is selected and checked without regard to them. Perpetual futures are leveraged derivatives. Prices can move fast and you can lose all of your margin. Not available in every jurisdiction. Not investment advice.