✍️ 9 December, 2022 – 5:52 👤 Editor: Jakub Motyka
- Ether vs Ethereum, what is the difference? Easy: one is a cryptocurrency, and the other is a blockchain.
- Ethereum uses proof of stake consensus to secure transactions. Ether is the crypto.
- The latest news about cryptos is on our Telegram channel.
The difference between Ether and Ethereum is easy to understand. Ethereum is a blockchain, ranking the second largest, while Ether is the main cryptocurrency in the network. Shortened as ETH, the crypto is used for sending and receiving payments without intermediaries.
Ether is also used for paying transaction fees, or gas fees, on decentralized applications. But, getting more in depth, how are Ethereum’s gas fees determined? Initially, the blockchain used an auction system to determine the gas fees paid as rewards to validators confirming transactions, where high bids were ranked top in the queue.
Ethereum: How Ethereum Blockchain Is Secured
After EIP 1559 update in 2021, the process used by Ethereum to set gas fees changed. An algorithm model was introduced based on the number of active users on the network. The model also allows users to add fees and jump the queau.
Of importance to note is that Ethereum is secured by volunteers who run nodes or computers that validate transactions. The network is based on the principles of blockchain technology: decentralization, trustlessness, and network security.
On September 15, Ethereum introduced Eth2, a proof of stake blockchain model different from the initial proof of work consensus. The new model allows validators to stake ETH on Beacon Chain for a chance to validate transactions and earn block rewards.
Ether: Ether Token Economics And Where To Buy
Ethereum launched with an initial Ether token supply of 72 million ether, selling the first batch of 60 million in the first distribution event. The sale was completed in September 2014 before the Genesis Block launched in July 2015. Ethereum has no token supply limit, unlike its predecessor, Bitcoin. At the time of this writing, the digital asset was trading for $1,230, with a market capitalization of $150 billion.
Ether is listed on major exchanges, including Binance, Coinbase, and Crypto.com. The token can be purchased using fiat money or with other cryptocurrencies. Ether can be kept in a custodial account offered by the exchange or on a self-custody account. The wallet can be hot wallets like MetaMask or a hardware wallet like Ledger or Trezor.
Ethereum allows developers to build projects on top of it and was the first blockchain to introduce smart contracts. Smart contracts are programs on a blockchain that self-execute when certain requirements are met.
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