Ethereum (ETH): how it works, supply and reviews

Layer 1 blockchain

In short

Type: Public layer-1 blockchain with smart contracts
Maximum supply: No fixed cap; supply changes with issuance to validators and fee burning
Risks and caveats: ETH has no maximum supply; net issuance depends on staking rewards and fee burning.
Checked: 28 October 2026

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On-chain stablecoin data

Organic stablecoin settlement, 30 days (2 October 2026 – 31 October 2026): US$502.42 bn in 22.2 million transfers; the scanner classes 74.4% of raw volume as inorganic (round trips, bot churn) and leaves it out
Issuer freezes on this network: 100 issuer acts in 30 days; 3,843 addresses frozen now (PYUSD, USD1, USDC, USDT); balances last observed in them: US$3.26 bn

On-chain measurement by Stablecoin Scanner (ACHIVX), not a reserve or solvency claim. As of 31 October 2026. The scanner notes: every row is something the issuer did; it says nothing about who the address belongs to or why. scanner page ↗

Key facts

Ticker: ETH
Category: Layer 1 blockchain
Network: own blockchain
Launched: 2015-07
Mining algorithm: Ethash
Official site: ethereum.org
Whitepaper: ethereum.org/whitepaper
Source code: github.com/ethereum/go-ethereum

Data: CoinGecko, 2026-10-27. Only projects that still trade with meaningful volume are listed.

What is Ethereum

Ethereum is a public, decentralised blockchain and software platform for smart contracts and applications. Its native currency, ether (ETH), pays transaction fees and is staked by validators to secure the network.

Network and consensus

Network and consensus — Ethereum
Parameter	Details
Type	Public layer-1 blockchain with smart contracts
Consensus	Proof of stake since The Merge on 15 September 2022; proof of work before that
Launched	30 July 2015 (Frontier release)
Block time	Fixed 12-second slots; one validator is selected to propose a block in each slot
Programming language	Smart contracts are mostly written in Solidity or Vyper
Validators	Running a validator requires depositing 32 ETH; staking pools let users stake smaller amounts

Supply and issuance

Supply and issuance — Ethereum
Parameter	Details
Maximum supply	No fixed cap; supply changes with issuance to validators and fee burning
Issuance	New ETH is issued to validators at a rate set by the protocol
Fee burn	Since the London upgrade (EIP-1559, 5 August 2021) each block's base fee is burned
Inflation	Net supply can rise or fall depending on network usage
Initial distribution	Ether was sold in a public sale that opened on 22 July 2014 and ran for 42 days

What ETH is used for

Paying transaction fees (gas) on Ethereum and the applications built on it.
Staking by validators to secure the network and earn rewards.
Payments and transfers between users.

Who develops and governs Ethereum

Founders: Vitalik Buterin and a small team of co-founders
Foundation: The Ethereum Foundation, a non-profit that funds development but does not control Ethereum
Governance: Off-chain process: protocol changes are proposed as Ethereum Improvement Proposals (EIPs), which anyone can write
Open source: Yes; client software such as go-ethereum is public on GitHub

History

History — Ethereum
Date	Event
2014	Ethereum whitepaper published.
30 July 2015	Mainnet launched with the Frontier release.
1 December 2020	The proof-of-stake Beacon Chain started producing blocks.
5 August 2021	London upgrade introduced EIP-1559 and the base-fee burn.
15 September 2022	The Merge moved Ethereum from proof of work to proof of stake.
12 April 2023	Shanghai/Capella (Shapella) upgrade enabled staking withdrawals.
3 December 2025	Fusaka (Fulu-Osaka) network upgrade activated.

Security and audits

A public bug bounty programme covers the protocol, clients and language compilers, with rewards of up to USD 1,000,000.
Validators who break protocol rules are slashed: they can lose part or, in a mass slashing event, all of their stake.

Risks and caveats

ETH has no maximum supply; net issuance depends on staking rewards and fee burning.
Ethereum's own documentation notes that proof of stake is younger and less battle-tested than proof of work.
Validators risk losing staked ETH through slashing penalties.

Official links

Website: ethereum.org/en
Docs: ethereum.org/en/developers/docs
Whitepaper: ethereum.org/en/whitepaper
Source code: github.com/ethereum
Governance forum: ethereum.org/en/governance

Questions and answers

What is Ethereum?

Ethereum is a public, decentralised blockchain for smart contracts and applications. Its native currency is ether (ETH).

Who created Ethereum?

Ethereum was launched in July 2015 by Vitalik Buterin and a small team of co-founders. The non-profit Ethereum Foundation supports development but does not control the network.

What is the maximum supply of ETH?

ETH has no fixed cap. New ETH is issued to validators, while the base fee of every transaction is burned.

How does Ethereum reach consensus?

Since 15 September 2022 Ethereum uses proof of stake: validators deposit 32 ETH, and one validator is selected to propose a block in every 12-second slot.

Sources

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Page updated: 2026-11-01