Ether is the native cryptocurrency of the Ethereum platform, which is a decentralized blockchain-based platform that enables the creation and execution of smart contracts.
- Cryptocurrency: Ether (ETH) is a digital or cryptocurrency, similar to Bitcoin. It can be used as a medium of exchange or a store of value.
- Ethereum is a blockchain platform that allows developers to build decentralized applications (DApps) and smart contracts. Ether is the fuel for these applications, as it is required to pay for transaction fees and computational services on the network.
- One of Ethereums significant features is its ability to support smart contracts. Smart contracts are self-executing contracts with the terms of the agreement directly written into code. Ether is used to facilitate and execute these contracts on the Ethereum network.
- Ether plays a crucial role in the rapidly growing field of decentralized finance. Many DeFi applications, which include lending, borrowing, and trading platforms, rely on the Ethereum blockchain and its native cryptocurrency, ether.
- Ether cryptocurrency can be acquired through proof-of-stake consensus mechanism (either staking) or by purchasing it on cryptocurrency exchanges. In proof-of-stake (either staking), participants can lock up a certain amount of ether as collateral to validate transactions and create new blocks.
- The total supply of ether is not capped, unlike Bitcoin which is capped. However, there is an annual issuance limit, and the Ethereum community has discussed proposals to change the supply dynamics through network upgrades.