Ethereum: What It Is, How It Works, and What You Need to Know in 2025
When you think of cryptocurrency, you’re probably thinking of Ethereum, a decentralized platform that runs smart contracts and powers thousands of apps without central control. Also known as ETH, it’s not just a coin—it’s the backbone of DeFi, NFTs, and most of the crypto ecosystem you interact with daily. Unlike Bitcoin, which mostly moves value, Ethereum lets you build on top of it. Want to trade tokens, lend money, or buy digital art? You’re likely using Ethereum.
Proof of Stake, the energy-efficient way Ethereum secures its network by locking up ETH as collateral instead of using massive power-hungry computers. Also known as PoS, it replaced mining in 2022 and cut Ethereum’s energy use by over 99%. This shift didn’t just make it greener—it made transactions cheaper and faster, especially when combined with Layer 2, secondary networks built on top of Ethereum to handle more transactions at lower costs. Today, platforms like Arbitrum and Optimism process millions of transactions daily, keeping Ethereum scalable without sacrificing security. That’s why gas fees, which used to spike over $100, now hover under $1 on most Layer 2s after the Dencun upgrade in 2025. You’re not paying for congestion—you’re paying for speed, and it’s never been this affordable.
People compare Ethereum to Solana, Polygon, and even Bitcoin, but none of them do what Ethereum does at scale. Solana is faster, but it crashes under pressure. Polygon is cheaper, but it’s not the default for most apps. Ethereum is the common language. If a project wants trust, it builds on Ethereum. If you want to earn yield, stake ETH. If you want to trade NFTs, check the Ethereum wallet. Even regulators use Ethereum as the benchmark when deciding what’s a security and what isn’t—thanks to the Howey Test and how ETH behaves differently than tokens tied to companies.
What you’ll find below isn’t just a list of articles—it’s a real-world guide to navigating Ethereum in 2025. You’ll see how gas fees compare to other chains, why staking ETH earns you more than you think, and how fake airdrops and shady exchanges try to trick people into thinking they’re part of the Ethereum ecosystem. Some posts cut through the noise on Layer 2s. Others warn you about scams pretending to be Ethereum projects. Every article here is built for someone who wants to understand Ethereum—not just trade it, but use it.