When someone mentions cryptocurrencies, the first thought that comes to everyone’s mind is Bitcoin. However, Ether (ETH) appears to be wrongfully overlooked, although it is the second most popular crypto out there. Moreover, Ether’s native network – Ethereum is one of the most popular and reliable blockchains out there. If you are new to the world of cryptocurrencies, this is Ether 101.
Early Beginnings
Back in 2013 Vitalik Buterin put his idea in writing and made a concept known as “white paper” of what would soon be known as Ethereum.
Apparently, he meticulously developed his concept, thinking about all of the possible obstacles that may come his way and offered solutions to overcome them. Therefore, his idea became reality in a very short period of time.
The following year, crypto enthusiasts accepted it as the first blockchain developed primarily for the purpose of being a decentralized network. This is the moment where we should stress that although Ethereum leans on Bitcoin’s blockchain, it was not originally invented so that the new cryptocurrency could come to life. The main purpose of Ethereum was to act as a truly decentralized Internet. Nowadays, we refer to it as “the world’s leading programmable blockchain”.
What is Ethereum and What is Ether?
These two concepts people usually do not distinguish. Ethereum is the network, while Ether (ETH) is the cryptocurrency.
Question that comes to mind is: if they wanted a new network, how come we ended with the new crypto as well?
Apparently, the network that supports various applications needs resources to run. Therefore, they needed a crypto to obtain all those resources, because paying for them with traditional fiat currency would not be possible as it would crumble the concept itself. And so, ETH was born.
How Ether (ETH) empowers Ethereum network?
Ether is, therefore, a digital currency. Nevertheless, it also empowers the network to operate. You may be wondering how?
As you may already know, blockchain is an open source. Anyone can contribute to it. In order to make any changes in any of the apps on Ethereum network, the user needs to pay a transaction fee. Otherwise, the Ethereum will not process it. How much the user should pay is up to the network itself, in a manner of speaking. Namely, what the network does is calculating the computing power and time necessary to perform the change.
Contributors that update protocols on Ethereum, basically make the apps better. You should know that most of the apps we are using today were built on Ethereum. Think e-wallets, various payment apps, investment apps, entire crypto markets, popular games where you can own in-game items and trade them among other users. These are all Ethereum-based products. Nowadays, we even have platforms that reward users with cryptos for either posting the content, commenting, or some other kind of activity on the platform.
Ether (ETH) and Online Gaming
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