what is ether

What Is Ether? (Updated 2019)

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What Is Ether?

The fact that you want to know about ether means that you are interested in cryptocurrency and that you are committed to knowing more about it. By definition, Ether belongs to the Ethereum platform. It refers to the cryptocurrency token that is traded on the platform. Apart from being a token, Ether functions as the fuel which DApps developers that are created on the platform use.

To make the analogy simple, Ether is synonymous to the fiat money that is used to make purchases on the internet. Just that Ethereum makes use of Ether as a currency. The nature of the platform has somewhat made Ether more engaging than Bitcoin is.

what is ether

What are the facts?

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The bitcoin is not designed to function as a currency unit on a peer-peer network. Conversely, Ether serves as the gas that keeps the Ethereum platform operational.

How does ether work

Before smart deals can be executed on the blockchain, smart contracts optimization and other such connectivity need to be implemented. To do this, the system needs to source for computational analysis to aid the execution of the smart contracts. This is where Ether is the most useful. Ether serve as a fuel that allows a smooth implementation of these processes. Ether is capable of providing an implementation for multiple systems. These are referred to as nodes and they attest the various blocks that exist on the Ethereum platform.  These nodes are responsible for implementing any change to the Ethereum blockchain. It should be noted that any change that is made on the Ethereum platform cost Ether (the fuel) and with every block certification, 5 Ethers are credited to every successful node.

The system is responsible for producing a block every 15-17 seconds. Additionally, certain nodes are capable of implementing solutions to different block problems. When this takes place, the network gifts the node with about 2-3 Ethers.

Let’s share some light on some questions that might be lingering in your hearts.

Define Gas: To make use of Gas, you have to determine the cost and amount of ether and various modifications that need to be made. To help you grasp this idea easily, think of it as the GAS that keeps your auto-mobiles going. Similarly, GAS is what keeps the Ethereum platform functional and it differs based on the operation at hand.

Define ERC-20?

As discusses earlier, the Ethereum network is important in the expansion of all cryptocurrency token and DApps. The ERC-20 refers to a technical condition that is essential for smart contract implementation on the Ethereum platform for realizing tokens. The complaint tokens can be customized to answer to different names. This is why initial coin offers make use of the Ethereum blockchain for implementing their DApps and token sale during the early stages of their projects.

This simple analogy can be used to clarify the difference between ERC-20 and Ether. Picture a scenario where you can use Ether to purchase an app from the store. Upon getting home, you launch the app and there are some in-app purchases which you can buy with (ERC-20) in-app tokens. So Ether allows you to make the initial purchase but ERC-20 allows you to make sub purchases.

Is there a limit to the supply of Ether?

This question is another major source of distinction between Ether and Bitcoin. Bitcoin has a maximum supply of about 21 million tokens. Ether von the other hand can reach a supply of over 60 million. This was demonstrated in 2014 when various investors bought about 60 million Ethers by way of Ethereum initial coin offer. 12 million out of these went to the research study group of the Ethereum foundation.

Can Ether avert inflation?

This feature is one of the few things that Ether and bitcoin have in common. Both are available in large supply, and as a result, can be quite capable of preventing inflation.

Ever heard of disinflationary token? That is what Ether is. Every year, new Ethers are created, however, the old ones are lost as a result of account owner’s death, forgotten password, or loss of interest in an existing account. To tackle this, Ether strives to bridge the gap between the old, the lost, and the new tokens. Some have argued that by 2140, Ether would stop being deflationary and bitcoin would have released its last token.

what is ether

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.