Ethereum is a cryptocurrency and blockchain platform that provides a decentralized, global computer on which developers can build decentralized applications (Dapps) and their own crypto tokens.

Ethereum was first described in a white paper published by computer programmer Vitalik Buterin in 2013. The Ethereum network is a decentralized virtual computer with a programming language that allows developers to create and run smart contracts. Smart contracts are computer programs that can automatically facilitate, verify, or enforce the terms of a contract entered into by human or computer counterparties. The distributed computational resources that the Ethereum network brings to bear on a smart contract are paid for in ether, its currency unit.

If bitcoin resembles “digital gold” (i.e., a store of value), then ether resembles “digital oil” that powers a decentralized, global computer.