Ether
Ether is the native cryptocurrency or 'fuel' that powers the Ethereum network, a decentralized, open-source blockchain featuring smart contract functionality. Just as Bitcoin uses its own currency (bitcoin), Ethereum has Ether.
Introduction to Ether
Ether is more than just a digital currency; it's a necessary element for running the distributed apps and contracts on the Ethereum platform. In this way, Ether is synonymous with gas that powers the platform, used by developers to build and run apps on Ethereum, and by users to access those apps.
Creation and Market of Ether
Ether was first proposed in late 2013 and development was crowdfunded in 2014, with the network going live on 30th July 2015. Since then, it has become one of the largest cryptocurrencies by market capitalization. Ether can be bought, sold, or mined, just like Bitcoin.
1. Purchasing Ether:Ether can be bought on cryptocurrency exchanges, which are platforms where you can buy, sell, and hold cryptocurrencies. These exchanges operate similarly to stock markets. A potential buyer has to set up an account on these platforms, verify their identity, invest their traditional currency like USD or EUR, and then trade it for Ether.
2. Mining Ether:Mining is the process that involves solving complex mathematical problems using computational power, which leads to the addition of a new block to the blockchain. In return for the use of a miner’s computing power, miners are awarded a certain amount of Ether.
Uses of Ether
Primarily, Ether is used as 'fuel' within the Ethereum platform. Just like you would pay for a car's petrol with dollars, you pay for transactions and services on Ethereum with Ether.
Furthermore, it can also be used as a 'store value', often termed as 'digital gold', it can be saved, retrieved and exchanged at a later time, and its value doesn't depreciate over time. Lastly, it can be used as collateral for decentralized finance transactions. For example, people can put up Ether as collateral for a loan.
The Importance of Ether
Ethereum and Ether have played a significant role in furthering the field of decentralization. Ether's invention has led to the development of a large number of decentralized apps and projects in the blockchain space. As Ethereum grows, the value and impact of Ether are likely to grow as well.