ETH
Ether is a cryptocurrency used in Ethereum's global virtual machine. It has several uses: It is used to pay network participants for their contributions to the blockchain. Investors use it as a store of value, and traders use it to take advantage of price movements. Consumers can use it to pay for goods and services at businesses that accept it.
Definition
Ether (ETH) is the native cryptocurrency of the Ethereum blockchain platform. It is used to pay for contributions to the blockchain by network participants, serves as a store of value for investors, and is utilized by traders to capitalize on price fluctuations. Additionally, consumers can use Ether to pay for goods and services at merchants that accept it.
Origin
Ether was introduced in 2015 by Vitalik Buterin and other developers. The Ethereum platform was created to be a decentralized application platform, with Ether serving as its fuel. In 2014, Ethereum raised funds through a crowdsale and officially launched on July 30, 2015.
Categories and Characteristics
Ether can be categorized into two main types: one used to pay for transaction fees and computational services known as “Gas,” and the other as an asset for investment and trading. Key characteristics of Ether include:
- Decentralization: No central authority controls it; transactions are verified through blockchain technology.
- Smart Contracts: The Ethereum platform supports smart contracts, enabling automated and trustless transactions.
- High Liquidity: Ether is widely traded globally, offering high liquidity.
Specific Cases
Case 1: Alice is a developer who created a decentralized application (DApp) on the Ethereum platform. To deploy and run this application, she needs to pay “Gas” fees, which are paid in Ether to network participants.
Case 2: Bob is an investor who bought 100 Ether in 2017 when each Ether was priced at $300. By 2021, the price of Ether rose to $2000, and Bob decided to sell some of his Ether to make a profit.
Common Questions
1. What is the difference between Ether and Bitcoin?
Both Ether and Bitcoin are cryptocurrencies, but they have different uses and technical foundations. Bitcoin is primarily a digital currency and store of value, while Ether is the fuel for the Ethereum platform, supporting smart contracts and decentralized applications.
2. How can I buy Ether?
You can buy Ether through cryptocurrency exchanges. First, you need to register an account, complete identity verification, and then purchase Ether via bank transfer or credit card.
