3 July 2020
It’s the 21st century, and the advancement of technology has not stopped for a second. Things that our grandparents or even our parents couldn’t imagine are our reality now. The advancement of technology has led to an exciting new invention known as Cryptocurrency. Most of us have heard about many of these cryptocurrencies. This, of course, includes Ethereum. Even if everyone knows it, very few know the difference between Ethereum and Ether.
So, what is Ether?
Ether v. Ethereum
Ether or ETH is Ethereum’s currency. Sometimes people can get confused and mistakenly think they are the same thing.
It may sound simple, but this Cryptocurrency is more complex than it seems. It was created to give a monetary value to operations and avoid fraudulent actions on Ethereum.
To promote the project, 60 million Ethers were created. Out of them, 12 million ended up being used to create a development fund for contributors.
A short review of Ether’s price history
In the beginning, Ether’s growth was slow but unstoppable. In 2016, its prices went from $0.95 to $20.59, but at the end of the year, ETH closed about $7.00-$8.00. It was a low rate in front of its competitors in the market. But patience is a virtue. The investors who trusted in this new Cryptocurrency knew it better than anyone.
In early 2017, Ether’s initial price was $8.33. But that changed by the end of the year when the Cryptocurrency stood at $675. The real surprise came when in early 2018, it doubled in value to $1,432. Right now, it is oscillating at around $200. Despite its drastic decline, some analysts think its value may rise again this year.
What is the Purpose of Ether?
Ethereum works with decentralized apps (Also known as dApps) and Smart Contracts. If you want to change, create, or delete something, it will need processing power. This is where Ether makes its appearance. It works as the fuel that the app needs to make these changes.
The fee depends on the time and power required to complete the action. In other words, every action performed on the platform has a cost and is paid with Ether. The clients pay their applications or operations with this Cryptocurrency. It also can be transferred to other people over the internet.
What makes Ether special?
Like Bitcoin, Ether is decentralized. This means it cannot be controlled by any government or institution. But we are not here to talk about their similarities. What makes Ether different from other cryptocurrencies is its purpose. Ether is not only digital money, but it also keeps the Ethereum blockchain running.
Some issues do remain with Ether that still need to be resolved. Some users forget their private keys, others can accidentally send Ether to the wrong address. These little mistakes lead to the loss of Ether every year.
To avoid this problem, Ethereum is expected to switch to a new consensus protocol. This is the Proof of Stake for Ethereum 2.0. This protocol encourages participants to have a certain amount of coins at all times. This way, participants will get a reward for being part of the network.
Like other cryptocurrencies, Ether is in constant evolution. And if we consider its accessibility and dynamism, the possibilities are endless.