What Is Ether?

Ether (ETH) is a cryptocurrency and a decentralized computing platform. It is the second-largest cryptocurrency by market capitalization after Bitcoin. The Ethereum blockchain enables smart contracts and decentralized applications (dApps) to be built and run without downtime, fraud, control or interference from a third party. 

Ether is used to pay for transaction fees and services and as a staking reward for stakers that validate transactions on the network. It can also be used to build DeFi applications, games and other applications that run on the Ethereum network. 

Ether vs Ethereum

Ether and Ethereum are both terms that tend to be used interchangeably. Ether is the cryptocurrency token used in the Ethereum network. It is used to pay for transactions and services on the network. Ethereum is a decentralized public ledger designed to facilitate the development of decentralized applications (dApps). It is powered by Ether and provides the necessary infrastructure for developers to create, host and deploy blockchain-based applications.

Ether vs Bitcoin

Bitcoin and Ethereum are both open-source platforms based on the concept of blockchain technology, but they differ substantially in purpose and capability. 

Bitcoin is a peer-to-peer decentralized digital currency system designed to enable online payments and store value. Ethereum is a platform for building decentralized applications and smart contracts, allowing developers to create and deploy decentralized applications and programs that run on the Ethereum Virtual Machine (EVM). The Ethereum blockchain is also more versatile and can be used to create digital tokens and other value-based assets, such as ERC-20 tokens and NFTs.

Where Can I Buy Ether?

Ether can be purchased from many different cryptocurrency exchanges. Some of the most popular exchanges include Coinbase, Kraken and Binance.

Ether and DApps

Ether is used to transfer value between participants in a decentralized application and is used to pay transaction fees, such as smart contract execution fees. It also provides financial incentives for people who run the DApp’s backend infrastructure. Additionally, Ether can be used to purchase items within a DApp, such as in-game items or digital tokens.

Read: Next Steps for Ethereum After The Merge.