Ethereum Application Layer

Definition ∞ The Ethereum application layer represents the ecosystem of decentralized applications, smart contracts, and user interfaces built on top of the Ethereum blockchain. This layer allows developers to create and deploy various services, from decentralized finance protocols to non-fungible token marketplaces. It functions as the public interface for users to interact with the underlying network. This layer is where most user activity occurs within the Ethereum environment.
Context ∞ News about new decentralized applications, protocol upgrades, or significant user activity on Ethereum directly concerns the application layer. Growth in this sector indicates increasing utility and adoption of the Ethereum network. Regulatory discussions often focus on the activities and financial instruments operating within this layer. Its ongoing development drives innovation and expansion within the broader digital asset space.