What is Ethereum? The blockchain that runs apps
By SendPay Business · · 2 min read
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Ethereum is a blockchain that can run programs as well as record payments. Its own currency is called ether (ETH), and it is the second-largest cryptocurrency by market value after Bitcoin.
How it differs from Bitcoin
Bitcoin was built mainly to be digital money. Ethereum was built so developers could put programs, called smart contracts, on a blockchain. Many tokens, collectibles and decentralised apps run on Ethereum.
Smart contracts
A smart contract is code that runs exactly as written once it's on the blockchain, for example releasing a payment when a condition is met. Mistakes in the code can't easily be undone, so bugs have led to large losses.
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Gas fees
Every transaction or contract action on Ethereum costs a fee called gas, paid in ether. Fees rise when the network is busy. Since 2022 Ethereum has used proof of stake, where validators lock up ether to secure the network, instead of mining.
The risks
Ether's price can swing sharply, transfers generally can't be reversed, and scams often pose as new tokens or apps. In the UK, crypto isn't covered by the Financial Services Compensation Scheme.
Where SendPay fits
SendPay crypto exchange platforms let your customers buy, sell and hold crypto under your own brand, and you set your own trading fee. Assets are held with regulated partners.
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Questions people ask
How much does an Ethereum transaction cost?
Work out a gas fee in ETH and in your currency.
Gas fee calculator →What fees do exchanges charge?
Trading fees, spreads and network fees.
Crypto exchange fees explained →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.