Ethereum and Ether terms are used interchangeably. They are completely different and it is important to know the differences. This post will help you understand the key differences between Ethereum (Ether) and Ethereum.
What is the difference between Ethereum and Ether?
The main difference is, to keep it simple and short, that Ethereum is a platform based on blockchain technology, while Ether is the currency which is actually the fuel for this platform. I know that some of you will disagree with me, and others will claim that Ethereum appears as Ethereum in the CoinMarketCap.
That’s true. This is true.
Let’s get into more detail now that you have a better understanding of their differences.
Have you ever wondered how Ethereum Classic fits into the Ethereum universe? Here’s more information on the ETC vs ETH comparison, and why they split apart.
What is Ethereum?
Vitalik Buterin is a Russian programmer who dropped out of the University of Waterloo in 2013. He invented Ethereum around mid-2013. Buterin first presented his Ethereum whitepaper in Miami in 2014. The system was launched on July 30, 2015.
Platform allows you to create decentralized applications and smart contracts that execute themselves when coded conditions have been met. Dapps are going to change everything. They will revolutionize the way we live.
Use this example as a guide to help you understand
Robert has given a contract worth 10 ETH to Alison for website development. Bob’s website requirements and conditions are hardcoded on the Ethereum Blockchain. This blockchain now acts as an evaluator when Alice sends Bob the completed website for his approval.
Bob has already coded all of his needs (theme and load time) before he even started. The 10 ETH will only be paid to Alison, if the conditions have been met.
It’s like this: For Alice to submit her work for review on the blockchain. Bob checks that all requirements are met and then the contract automatically executes payment to Alison.
Even Bob cannot stop the payout if all conditions are met. What happens when these conditions aren’t met? If these conditions are not met, Alice must continue to work until they are.
Ethereum has a smart contract system that is incredibly powerful. It’s more than just a cryptocurrency to invest and hold.
This tamper proof feature , which is ensured through cryptography, makes blockchain technology an attractive application.
What is Ether HTML0?
Ethereum uses Ether as the currency fuel to power its blockchain. It is also the payment source for smart contracts, other Ethereum transactions and for cryptocurrency.
Like an aircraft, you also need fuel. Ether is required to perform every operation on Ethereum’s blockchain.
Ether (ETH), can be used for many different purposes, such as to create tokens and to make standard P2P payment.
Ether runs Ethereum, and without it, the network cannot function properly. Ethereum is sometimes called “programmable currency” because of this.
Ether, in a technical sense, is used on the Ethereum Network as currency to reward developers and miners for solving complex mathematical problems.
Ether, like all other assets, is finite and cannot be duplicated indefinitely. The 2014 pre-sale agreement stipulated that Ether issuing was limited to only 18 million Ether each year. 60 million Ether were to be available from the start.
The Ethereum Foundation is the one responsible for creating the technology behind the Ether. Out of the 60 million Ether created initially for pre-sale only 48 millions were made available for public sale.
When someone says they have invested money in Ethereum it means that they actually bought Ether.
Ethereum, also known as Ether (ETH), is a public, open-source blockchain platform that supports smart contracts (scripting). Its cryptocurrency is what runs the Ethereum Network.
Understand the Difference
Ethereum and Ether have three main differences:
- Ethereum is an entire network. Ether, on the other hand, is “fuel” that powers the whole network.
- Ethereum is not a tradeable currency, but Ether may be purchased and sold.
- Ethereum is used in many real life applications (healthcare, banking and so on), but Ether only has one – it’s to allow operations on the Blockchain.
This post should have helped to clarify your understanding of the differences between Ethereum and Ether. It is safe to say that after reading this detailed explanation, you won’t be confused when you are asked to buy Ethereum or Ether.
Many people are unaware of the correct terminology when it comes to cryptocurrencies. It can lead to unsatisfactory outcomes.
By understanding the difference between Ethereum and Ether you are one step closer to making better and more informed decisions about their cryptocurrency and application needs.
