Ethereum is a decentralised network whose cryptocurrency is called Ether (ETH). Where Bitcoin focuses on being digital money, Ethereum was designed to run programs called smart contracts — code that executes automatically when conditions are met.
Smart contracts and apps
Smart contracts let developers build decentralised applications (dApps) for things like trading, lending, and digital collectibles. Ether is used to pay the network fees needed to run these operations.
Things to keep in mind
- Ether’s price is volatile, like other crypto.
- Network fees (“gas”) can rise when the network is busy.
- Smart-contract apps can contain bugs or be targeted by scammers.
Crypto is high risk and largely unregulated in the UK. You could lose all the money you invest, and most crypto is not protected by the FSCS or the Financial Ombudsman Service. This is educational information only, not financial advice. Only invest what you can afford to lose.