---
id: "entity-ethereum"
type: "entity"
entityType: "product"
canonicalName: "Ethereum"
aliases: ["ETH"]
source_timestamps: ["00:27:00"]
tags: ["blockchain", "cryptocurrency", "layer-1"]
related: ["concept-blockchain-toll-road-metaphor"]
sources: ["secinsider"]
sourceVaultSlug: "damsker-sec-defi-wealth-creation-2026Jun25"
originDay: 7
---
# Ethereum

## Profile

**Ethereum** is a decentralized, open-source Layer 1 blockchain with smart contract functionality. Its native token is **ETH**, which is used to pay 'gas' fees for executing computations and transactions on the network.

## Role in This Source

Used by [[entity-alexandra-damsker|Damsker]] as the primary example for the [[concept-blockchain-toll-road-metaphor|toll road metaphor]]:

- Ethereum = the road
- ETH = the toll
- Gas fees = what you pay to use the infrastructure

The enrichment overlay validates this analogy as broadly correct.

## Why It Matters

It is the canonical example for explaining *why utility tokens have value beyond pure speculation* — they are the required payment mechanism for accessing decentralized infrastructure.

Related: [[concept-defi-definition]], [[concept-digital-wallet-mechanics]].