This.
An ESTA is valid for 2 years and is basically a pre-approved Visa Waiver. Previously European passport holders had to complete a Visa Waiver form and submit it on arrival in the US.
The 2 year limit is a pain as you need to remember when your last ESTA started (there is no paperwork unless you print out the app confirmation and fold it/keep it safe with your passport). Mine was last renewed in July 2013 ... perhaps I should get organised and put a note in my calendar.