Ethereum is not a decentralized finance application itself, but rather serves as the foundational layer-1 blockchain network and programmable smart contract platform upon which the vast majority of the decentralized finance ecosystem is built. While Ethereum provides the decentralized security, computational infrastructure, and settlement layer, DeFi encompasses the specific financial applications—such as lending markets, automated market makers, and synthetic asset platforms—that operate on top of the Ethereum network and other compatible blockchains.