Introduction to Ethereum Terminology
This comprehensive glossary covers essential Ethereum blockchain terms, providing clear explanations and practical insights for developers and enthusiasts.
Core Ethereum Concepts
Ethereum
A decentralized application platform based on blockchain technology. Enables smart contract functionality and decentralized applications (DApps).
Ether (ETH)
The native cryptocurrency of the Ethereum network used for:
- Transaction payments
- Computational fee payments
- Network value transfer
Smart Contracts
Self-executing digital agreements containing:
- Programmed promises
- Execution protocols
- Automated enforcement mechanisms
Ethereum Virtual Machine (EVM)
The runtime environment for smart contracts in Ethereum, featuring:
- Sandboxed execution
- Deterministic outcomes
- Gas-based computation
Ethereum Development Tools
Solidity
The primary programming language for Ethereum smart contracts, offering:
- JavaScript-like syntax
- Strong typing
- Contract-oriented features
👉 Learn Solidity development best practices
Viper
An emerging smart contract language with:
- Python-like syntax
- Security-focused design
- Formal verification capabilities
Geth
The most widely used Ethereum client featuring:
- Command line interface
- Full node implementation
- Developer tools
Transaction Mechanics
Gas
The fuel of Ethereum operations that:
- Measures computational work
- Prevents spam attacks
- Determines transaction fees
Transactions
Value transfers containing:
- Sender/receiver addresses
- Data payloads
- Cryptographic signatures
MPT (Merkle Patricia Tree)
The data structure that:
- Stores account states
- Enables efficient verification
- Maintains cryptographic consistency
Ethereum Network Upgrades
Proof of Stake (PoS)
The upcoming consensus mechanism featuring:
- Validator staking
- Energy efficiency
- Economic security
Casper Protocol
Ethereum's PoS implementation combining:
- Finality gadgets
- Validator rotation
- Slashing conditions
Zero-Knowledge Proofs
Advanced cryptography enabling:
- Private transactions
- Identity verification
- Scalable solutions
Ethereum Standards
ERC-20
The token standard defining:
- Basic transfer functionality
- Balance tracking
- Approval systems
EIPs (Ethereum Improvement Proposals)
The formal process for:
- Protocol upgrades
- Standard definitions
- Community governance
👉 Explore Ethereum's technical roadmap
Frequently Asked Questions
What's the difference between Ether and Ethereum?
Ethereum is the blockchain platform, while Ether (ETH) is the native cryptocurrency that powers transactions and smart contract execution.
How do smart contracts work?
Smart contracts automatically execute when predetermined conditions are met, with code stored on the blockchain for transparency and immutability.
Why is Gas important?
Gas prevents network abuse by requiring payment for computational resources, while allowing predictable fee estimation.
When will Ethereum transition to PoS?
The transition is happening progressively, with full implementation expected in the Serenity (Eth2) upgrade.
What are ERC-20 tokens?
Standardized digital assets built on Ethereum that enable interoperable tokens for various projects and applications.
Conclusion
This glossary covers fundamental Ethereum concepts from smart contracts to network upgrades. As the ecosystem evolves, new terminology emerges to describe advancing technologies like zk-Rollups and layer-2 solutions.
For developers, understanding these terms is crucial for building secure decentralized applications. For users, it enables informed participation in the Ethereum network and its growing DeFi ecosystem.