However, there are many people who use Ether as a cryptocurrency and confuse its name, calling the asset ‘Ethereum’.Ī cryptocurrency is a type of digital currency managed through its own community based on blockchain technology. The founding team of Ethereum explains that the people who need Ether are mainly the developers who want to build applications on the Ethereum blockchain and the users who want to access it and interact with smart contracts. Therefore, the main utility of the Ether is as a crypto-fuel. We could say that Ether is the incentive to ensure that developers write quality applications and that the network remains stable. These, like the miners, receive Ether for their work. The developers of Ðapps (decentralized applications) are also part of Ethereum, as their development work is what will later result in better applications. These miners receive Ether as a reward for executing the operations of the platform. The Ethereum network, moreover, is formed by each and every one of the computers that work verifying operations in the blockchain, also called miners. To publish, remove or modify something on the Ethereum network, we must pay a transaction fee in Ether ( ETH) for the network to process that change. And just like when we use cash, it does not require a third party to process or approve a transaction.īut instead of operating as a digital currency or payment, the Ether seeks to provide “fuel” for decentralized applications on the network. Like Bitcoin, Ether is a digital asset (and for simplicity we call it cryptocurrency). It needs ‘ Ether‘, a token that can be used to pay for the computational resources needed to run applications or programs. As we have explored in “ What is Ethereum?“, Ethereum aims to work as a kind of decentralized Internet and a platform to support Smart contracts and applications called Ðapps.īut even if no one controls Ethereum, the system is not free.
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