Ethereum Based Asset

Definition ∞ An Ethereum Based Asset is any digital asset or token issued and managed on the Ethereum blockchain. These assets typically adhere to specific technical standards, such as ERC-20 for fungible tokens or ERC-721 for non-fungible tokens, allowing them to interact smoothly with Ethereum’s ecosystem of decentralized applications and wallets. They obtain their security and operation from the underlying Ethereum network.
Context ∞ Ethereum based assets constitute a substantial portion of the digital asset market, supporting a vast array of decentralized finance and non-fungible token initiatives. News frequently reports on new token introductions, protocol improvements, and the overall health of the Ethereum network, which directly impacts these assets. The ongoing scalability enhancements and fee reductions on Ethereum remain vital for their continued growth.