Ether Definition
Ether is the cryptocurrency, or digital currency, native to the Ethereum blockchain platform. The Ethereum platform is a decentralized open-source, blockchain-based software platform that has its own cryptocurrency, Ether.
Ether Key Points
- Ether is the digital currency native to the Ethereum blockchain.
- It is used to enable and facilitate transactions on the platform.
- Ether can be traded or mined, similarly to other cryptocurrencies.
- It’s one of the most popular and valuable cryptocurrencies, second only to Bitcoin in market capitalization.
- Ether also powers smart contracts on the Ethereum network.
What is Ether?
Ether is the fuel or “gas” used to power transactions and computations on the Ethereum network. It is designed to incentivize users to maintain the network because they earn Ether for verifying transactions and adding new blocks to the chain.
Who Uses Ether?
Ether is used by developers who build applications on the Ethereum platform, and by users who want to access and interact with these apps. It is also used by traders and investors, who buy and sell Ether in hopes of making economic gains.
Why is Ether Important?
The importance of Ether comes from its association with the Ethereum platform, which is home to a large number of decentralized applications (dApps). These applications require Ether to run. Additionally, because Ether is the second largest cryptocurrency by market cap, it plays a significant role in the digital currency market.
When was Ether Created?
The concept of Ethereum and Ether was first proposed in 2013 by programmer Vitalik Buterin. However, the Ethereum network, and therefore Ether, was officially launched in 2015.
Where can Ether be Used?
Ether can be used on the Ethereum network to execute smart contracts, run dApps, and pay for transaction fees. Outside of the network, Ether can be traded on various digital currency markets and can be used to purchase goods and services where it is accepted.
How is Ether Created?
Ether is created through a process called mining, in which powerful computers perform complex calculations to validate transactions on the Ethereum network. For their efforts, miners are rewarded with a certain amount of Ether. This mechanism ensures that the Ethereum network remains decentralized and secure.
