Ethereum operates on a decentralised, open source blockchain with smart contract functionality. In terms of market cap, Ethereum is the second most prominent cryptocurrency. Its share of the market is approximately 50% less than Bitcoin’s share, and three times more than the third cryptocurrency.

Ethereum has been seen as “digital silver,” because, unlike Bitcoin, Ethereum has a real use case in day-to-day life. Its primary purpose is to facilitate and monetise the operation of Ethereum smart contracts and its decentralised application platform. It is not designed as an alternative monetary system, as is the case with Bitcoin. Perhaps for this reason, most DeFi applications are primarily based on Ethereum blockchain smart contracts.