Ethereum Transforms into Programmable Blockchain Infrastructure Layer

Ethereum has evolved from a cryptocurrency network into a programmable blockchain infrastructure layer used for decentralized finance, stablecoin settlement, tokenization, and blockchain-based applications.

Its native asset, ETH, is used to pay transaction fees, post collateral in some protocols, and secure the network through staking. The ETH price is influenced by a range of factors, including network activity, demand for block space, use of Ethereum in staking and DeFi, macro sentiment toward crypto assets, and the pace of Ethereum's technical upgrades.

The shift to proof-of-stake (PoS) with the September 2022 Merge changed Ethereum's security and economics. The PoS system allows validators to lock up ETH to participate in block production and attest to new blocks; they can be penalized through 'slashing' for certain forms of malicious behavior or severe protocol violations.

Ethereum supports a large ecosystem of decentralized applications, or dapps, that use smart contracts to execute transactions and business logic onchain. These applications are concentrated in sectors such as decentralized finance, digital collectibles, blockchain gaming, and tokenized payments.