Ethereum (ETH) is a cryptocurrency that runs on an innovative blockchain network launched in 2015 by Vitalik Buterin. Ethereum is designed as an open platform that allows developers to build and implement smart contracts and decentralized applications (dApps) that operate without downtime or third-party intervention.

The main feature of Ethereum is “smart contracts”, which are programs that automatically execute when certain conditions are met. These contracts can be used in a wide range of applications, from finance to supply chains.

Ethereum has undergone many updates, most notably “Ethereum 2.0” or “Eth2,” which aims to improve speed, efficiency, and scalability by shifting from proof of work (PoW) to proof of stake (PoS). This update is important to handle the spike in usage and demand on the network.

In terms of market capitalization, Ethereum is the second largest cryptocurrency after Bitcoin, and is very popular among developers and investors. Many new projects use it to fund their activities via Initial Coin Offerings (ICO).

However, Ethereum faces challenges, such as high transaction fees known as “gasing,” which may hinder widespread adoption. But continuous developments and new updates may help overcome these obstacles.