If you’re new to cryptocurrency, you may think Ether and Ethereum are the same. But are they? No.Â
Ethereum and Ether aren’t the same entity, although they might be somewhat related.
Ethereum is a blockchain technology that supports the tokens on the platform. On the other hand, Ether is one of the tokens, unlike the main one, Ethereum.Â
People in the cryptocurrency industry are aware of Ether and Ethereum. One of the main reasons people need to find out the difference between Ether (ETH) and Ethereum is that they have the same name.Â
As of March 2024, there were 260 million ETH wallets. Therefore, it is undoubtedly one of the most popular cryptocurrency tokens.
However, there is a significant difference between the token and the platform.Â
This article acts as your guide to understanding the difference between Ether (ETH) and Ethereum.
What is Ethereum?
Ethereum is a decentralized, open-end, blockchain-based software platform available to the public. This platform facilitates peer-to-peer contracts for decentralized applications and smart contracts.Â
The Ethereum network acts as a decentralized computer that functions seamlessly with the smart contract code. It is through decentralized applications that the Ethereum network successfully achieves decentralization. These smart contracts are capable of storing encrypted data.
Therefore, Ethereum maintains data privacy and integrity without a centralized platform.Â
What is Ether?
The Ethereum platform developers needed a cryptocurrency. Thus, they created Ether to run applications. Ether, as a cryptocurrency token, can handle computational services and transaction fees.
Users can send Ether to each other, whereas the developers write smart contracts for receiving, holding, and sending Ether.Â
Ether comes into existence via mining on Ethereum. If the miners successfully verify a particular group of transactions, they get Ether. All the miners need to follow the platform’s cryptographic rules for stability, safety, and security.Â
What is the Difference Between Ether (ETH) and Ethereum?
Despite sounding so similar, there’s a significant difference between Ether (ETH) and Ethereum. Let’s understand some of them:
| Ether | Ethereum |
| Ether is a token, which is the native currency of the Ethereum blockchain. | Ethereum is a decentralized blockchain platform. |
| Ether is useful for managing computational services and transaction fees on the network. | Ethereum is only the network, and there is no involvement of paying the transactional fee. |
| Ether is protected by smart contracts and decentralized apps. | Ethereum refers to the open-source, blockchain platform that is responsible for managing secure and transparent transactions. |
| Ether can easily run smart contracts, which are further used for automating agreements between two parties. | All transactions on the Ethereum network are encrypted and protected. |
| The price of Ether can easily fluctuate considering it is a cryptocurrency. | Ethereum is a platform, which is why there is no involvement in price. Thus, it can’t be traded. |
Ethereum and Ether may not be the same, but they may be interdependent. The Ethereum network needs Ether to function. If there is no Ether on the Ethereum network, the miners cannot validate the transactions. However, Ether can only be used on blockchains that share compatibility with the Ethereum Virtual Machine.
How to Obtain Ether?
In order to obtain Ether, it is important to adopt the proper procedures. Apart from mining, some of the key ways through which you can obtain Ether are as follows:
- You can purchase Ether on any exchange platform as a fiat currency under the symbol ETH.Â
- There can be a transfer of ETH between people and entities.Â
- You can exchange Ether for Bitcoin only on platforms that offer the BTC-ETH pair.Â
- As a miner, you can work towards earning ETH. However, you must join a mining pool or purchase any cloud mining contract to get Ether.Â
What are Ethereum Wallets?
Before owning Ether, every individual must own an Ethereum wallet. Ethereum wallets are secure and can be easily downloaded. They can then be set up on their smartphones or computers. Every Ethereum wallet has private pass keys, which allow the wallet owner to sign transactions. This can be further used to send Ether to other parties.Â
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Should You Invest in Ether?
As of now, it is predicted that Ether will only grow shortly. There haven’t been any major changes to the platform. However, the growth rate is slightly unpredictable. Ethereum is constantly making updates to determine enticing and sustainable transactions.Â
Investors are likely to observe positive growth in Ether in the upcoming time. Ethereum is also bringing about second-generation upgrades, thereby helping to overcome the competition, especially in filling the gaps. Ethereum, however, should take the necessary actions to overcome the major challenges that it has, or it will lose the dominance that it has had over the years.Â
Final Words
Blockchain technology is expected to grow at a rapid rate in the coming days. Ethereum, as a blockchain platform, is expected to rise with the execution of decentralized finances, decentralized applications, and smart contracts. Ether is the token necessary for functioning across the Ethereum blockchain technology. Ether has become the second largest cryptocurrency after Bitcoin. However, it is essential to be aware of the difference between Ether (ETH) and Ethereum to determine better financial transactions and make smart choices regarding achieving more.
