Ethereum enables developers to create and deploy smart contracts, which are self-executing agreements or protocols with the terms of the agreement directly written into code. Smart contracts automatically perform actions once specific conditions are met, removing the need for intermediaries.

It introduced the concept of ERC-20 tokens, which are widely used for Initial Coin Offerings (ICOs) and the creation of various tokens on the Ethereum blockchain. Additionally, Ethereum has introduced various improvements over time, including a transition from a Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS) through its Ethereum 2.0 upgrade.