What is Ether?

Ether is the fuel needed to operate Ethereum which is a distributed app platform. Ether refers to a type of payment that is made by customers to machines which run the requested tasks. Like the Bitcoin, Ethereum has its individual denominations and names. It is used for paying different transactions and computing tasks which are run on Ethereum network. There is a restriction on the numbers of computational tasks which may be run on a single block.

What differentiates the Bitcoin or Ether from other traditional currencies is that these online systems will record all trades. There are networks of people called miners who use this software for verifying and recording transactions in these cryptocurrencies. There are digital addresses of these currencies which are stored in what are called block chains. Ethereum has come up with an open source platform which may be used by a coder to create block chain applications. Almost everyone may join the Ethereum network and provide computing power to this network. So, applications which are constructed on this platform will operate on collective computing powers of all computers which have joined this network, and not any centralized data center.

Although many people compare the Ether to Bitcoin, they are not rival currencies. This is because Bitcoin is clearly a digital currency while ether is a way to buy services from Ethereum. It is still not extensively used; however, investors are hopeful that this will change soon.

Connect With Us

Recent Post

Join 100000 + IT pros on our updates