Ethereum and Ether are so similar in names that they are used synonymously to each other in the Cryptosphere. But it is important to understand the difference between the two. Here is a guide to tell you all the similarities and differences between Ether and Ethereum.
Ethereum is the platform based on blockchain technology and Ether is the cryptocurrency of this platform.
It is also to be noted that Ethereum is listed as Ethereum in the crypto exchanges but it is just a denomination which is synonymously used with “Ether” which is the cause of confusion in many.
What is Ethereum?
Ethereum was invented in 2013 by Vitalik Buterin, a Russian programmer. He first presented the Ethereum blockchain in his white paper at the North America Bitcoins Conference in 2014.
Ethereum is a platform for writing and implementing smart contracts and DApps which are automatically executed when a certain set of coded conditions is met.
Let us understand the working of Ethereum with the help of an example:
Let us assume that Linda has given a project/contract to Nancy for website development for a price of 20 ETH. Linda has coded the necessary requirements, conditions and terms about the type and preference of the website needed by her on the Ethereum blockchain.
Now, when Nance submits her website (completed project) on the blockchain, it will act as an evaluator and if all the requirements and conditions are met, the smart contract will execute itself and Nancy will get her payment.
If the terms and requirements are not met, then Nancy has to keep working until all the conditions are met in order for her to get her payment.
What is Ether?
Ether or ETH is the fuel for the Ethereum blockchain. Just like you need fuel for starting a vehicle, in the same way, you require Ether (ETH) to do operations on the Ethereum blockchain such as smart contracts, transactions, decentralised applications etc.
Implications of Ethereum
There are a lot of technological implications of the Ethereum blockchain and the code written on the blockchain cannot be tempered, hacked or altered. These features of the Ethereum blockchain makes it tamper-free.