Why does Ethereum matter?

1. Eleven years without switching off

In technology, lasting is rare. Ethereum has been running since 2015 without stopping, and in that time it swapped its entire engine: in 2022 it moved from proof-of-work to proof-of-stake with the network running, like changing a plane's engine mid-flight. Its upgrades are debated in public, in numbered proposals (EIPs), and coordinated among several independent teams that write the node software.

For builders, that means something very concrete: a contract deployed years ago still works today. ENS names registered in 2017 are still valid.

2. The language the industry copies

When someone creates a token, they almost always use the ERC-20 standard. When they create an NFT, ERC-721. Those standards were born on Ethereum and today they are Web3's common language: wallets, exchanges and applications understand them without adaptation.

The same goes for the virtual machine. Many other networks —starting with Ethereum's layer 2s— run the EVM, so the same contracts, the same tools and the same wallet address work on all of them.

Learning Ethereum means learning the language of most of Web3.

3. Security with money at stake

In proof-of-stake, each validator puts up 32 ETH as collateral. If it acts in bad faith, the network takes part of that deposit. And to revert an already finalized block, an attacker would have to lose at least a third of all staked ETH. Security isn't based on trusting someone, but on attacking being far more expensive than taking part honestly.

Add diversity on top: thousands of nodes spread around the world and several independent software implementations. If one fails, the network doesn't go down with it.

4. Programmable money

Stablecoins —tokens that aim to be worth one dollar— circulate in large volumes on Ethereum and its layer 2s, and are used to pay, to save in dollars or to move value across countries. Integration with the traditional system is moving forward: since September 2024, PayPal's and Venmo's crypto sending features accept ENS names instead of hexadecimal addresses. More on this in tokens, stablecoins and NFTs.

5. Identity: ENS lives here

ENS, the .eth naming system, has run on Ethereum since 2017. It's the piece that turns an address like 0x4c2a…9f1b into yourname.eth, and the basis of what we call self-custodied digital identity: an identity no platform lends you.

6. Institutions: from exchange-traded funds to tokenization

ETH is the second-largest crypto-asset by market capitalization: 11.1% of the market, according to CoinGecko as of August 28, 2026. In the United States, ETH investment funds have traded since 2024, and asset managers such as BlackRock already run tokenized funds on Ethereum. The reason isn't fashion: it's a public network that has worked for years, with known standards and an ecosystem of auditors, custodians and tools.

In Chile, the Central Bank reported in August 2026 a proof of concept with wholesale central bank money and tokenized financial instruments, stating that it is not a decision to issue. We explain it in what tokenization is.

7. Scaling without sacrificing the base

Ethereum's growth strategy is for the main network to be the secure base and for layer 2s to handle the volume. Since the Dencun upgrade of March 13, 2024, layer 2s publish their data in a cheaper space and their fees came down. The result: payments of cents that still settle on Ethereum.

The criticisms, too

Ethereum isn't perfect, and it's worth knowing its weaknesses:

• Fees when the network is congested. On the main network, gas can rise a lot when demand spikes. Layer 2s ease this, but add steps.
• Fragmentation. With many layer 2s, your assets can end up spread across several networks, and moving them takes bridges.
• Complexity for users. Wallets, networks, signatures and gas are still hard for newcomers.
• Concentration. A significant share of staking goes through a few providers, something the community discusses openly.
• Competition. Other networks offer faster or cheaper transactions with different design trade-offs.

What it means for you in Chile

• If you use Web3: your wallet works on Ethereum and on every compatible network, and a .eth name works as your identity across all of them.
• If you build: what you learn about Ethereum carries over to almost the entire ecosystem. And if you build from Chile, you can name your contract with an ethereumchile.eth subname.
• If you work at a company or institution: tokenization and stablecoins are already on the Chilean regulator's agenda. Understanding Ethereum means understanding the infrastructure the pilots are being run on.

Where to go next

To use Ethereum you need a key. The next block explains exactly what that is: wallets, keys and recovery phrases.