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Ethereum
Ethereum is an open-source, decentralized computing platform that lets you run computer programs called “smart contracts” on a blockchain. Unlike traditional (non-blockchain) programs, Ethereum smart contracts are automatically executed by a network of computers worldwide, making them impossible to shut down or change once deployed.
Created in 2014, Ethereum goes beyond simple money transfers by allowing developers to build applications (dApps) that can automatically handle any task that can be described by computer code — all without needing a middleman. For example, these dApps can enable developers to create digital asset markets, store registries of debts or promises, move funds based on instructions given long ago (like a will or a futures contract), and many other capabilities, of which some are still to be invented.
Similar to how Bitcoin uses Bitcoin Improvement Proposals (BIPs), Ethereum uses Ethereum Request for Comments (ERCs) to propose new features and standards for the platform. You can find ERCs here: https://eips.ethereum.org/erc.
Ethereum was originally funded through a crowdsale Initial Coin Offering (ICO), which put initial Ether tokens into the hands of early investors. Additional funding comes from project fundraising initiatives and from a business consortium, the Enterprise Ethereum Alliance. Ethereum’s governance was initially performed by the Switzerland-based non-profit Ethereum Foundation, and now also includes multiple additional decentralized participants from the Ethereum community.
What is the native token of Ethereum? (Ether/ETH)
- Ether is the platform’s native cryptocurrency and serves as the backbone of the Ethereum ecosystem
- Ether is used to pay for deploying or running smart contracts (“gas fees”)
- Ether can be traded on exchanges or used in decentralized finance dApps
Ethereum Benefits
- Build and use automated, immutable, logically-predictable applications
- Create and trade digital tokens
- Access financial services(trading, lending and borrowing) without banks
- Potential to own and control your own digital identity and data
Ethereum Challenges
- Ethereum gas fees can be very high during periods of high network use
- A high level of expertise is needed to build and sometimes to use Ethereum contracts (especially when interacting with other blockchains)
- Complex and immutable contracts can lead to high-impact code vulnerabilities
- Regulatory status varies by country
Getting Started with Ethereum
- Choose a reputable wallet that supports Ether (ETH)
- Keep your private keys and backup phrases secure using Vault12 Guard
- Purchase ETH through reliable cryptocurrency exchanges
- Make sure to learn about gas fees and transaction costs
- Explore decentralized applications ranging from financial services (DeFi) to digital art marketplaces (NFTs)
Related Terms
- Decentralization
- Cryptocurrency
- Smart contract
- Gas
- Wallet
- Key Management

Vault12
Vault12 is the pioneer in crypto inheritance and backup. The company was founded in 2015 to provide a way to enable everyday crypto customers to add a legacy contact to their cry[to wallets. The Vault12 Guard solution is blockchain-independent, runs on any mobile device with biometric security, and is available in Apple and Google app stores.
You will lose your Bitcoin and other crypto when you die...
...unless you set up Crypto Inheritance Management today.
It's simple — if you don't worry about crypto inheritance, nobody else will — not your software or hardware wallet vendors, not your exchanges, and not your wealth managers. So it's up to you to think about how to protect the generational wealth you have created, and reduce the risks around passing that crypto wealth on to your family and heirs. What are the challenges with crypto inheritance?
- Crypto Wallets are difficult to use and do not offer crypto inheritance management. In fact, most of them tell you to write down your seed phrase on a piece of paper, which is practically useless.
- Some people back up their wallet seed phrases or private keys on paper, local devices like hardware wallets or USBs, or in the cloud. All of these options have severe drawbacks that range from hacking to accidental loss to disrupted cloud services.
- Software wallets operate onspecific blockchains, yet your crypto assets span multiple blockchains. For inheritance to work, you must be able to manage inheritance across every blockchain — now and forever.
Crypto Inheritance Management: Secure, Self-Custody Crypto Inheritance and Backup
Vault12 is the pioneer in Crypto Inheritance Management, offering a simple yet powerful way to designate a legacy contact and pass on your crypto assets—like Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) —to future generations. Built for everyday users yet robust enough for the most seasoned crypto enthusiasts, Vault12 Guard ensures your wallet seed phrases and private keys are preserved in a fully self-sovereign manner, across all Blockchains.
At the heart of Vault12 Guard is quantum-resistant cryptography and a decentralized, peer-to-peer network of trusted Guardians. Your critical information is never stored in the cloud, on Vault12 servers, or even on local devices—dramatically reducing the risk of a single point of failure. By fusing a powerful software layer with the Secure Element of iOS devices (Secure Enclave) and Google devices (Strongbox), Vault12 Guard locks down your private keys against present and future threats.
Our innovative approach harnesses social recovery, enabling you to appoint one or more trusted individuals or mobile devices as Guardians. These Guardians collectively safeguard your protected seed phrases in a decentralized digital Vault—so there’s no need for constant lawyer updates or bulky paperwork. Should the unexpected happen, your chosen legacy contact can seamlessly inherit your crypto assets without compromising your privacy or security.
Preserve your digital wealth for generations to come with Vault12 Guard—the simplest, most secure way to manage crypto inheritance and backup.
Take the first step and back up your crypto wallets.
Designed to be used alongside traditional hardware and software crypto wallets, Vault12 Guard helps cryptocurrency owners back up their wallet seed phrases and private keys (assets) without storing anything in the cloud or any single location. This increases protection and decreases the risks of loss. Making sure you have an up to date back up is the first step in crypto inheritance management.
The Vault12 Guard app enables secure decentralized backups and provides inheritance for all your seed phrases and private keys across any blockchain, including Bitcoin, Ethereum, ERC-20, and other crypto wallets.
Note: For anyone unfamiliar with cryptocurrencies, Vault12 refers to wallet seed phrases and private keys as assets, crypto assets, and digital assets. The Vault12 Guard app includes a software wallet that works alongside your digital Vault. The primary purpose of this is to guard your Bitcoin (BTC) or Ethereum (ETH) wallet seed phrases, private keys, and other essential data, now and for future generations.