When people think of Ethereum, they often think of it as a cryptocurrency – much like Bitcoin. However, Ethereum is actually a decentralized platform that runs on blockchain technology.
So while Ethereum does have its own cryptocurrency (known as Ether), it is much more than just a digital currency.
The Ethereum platform was created in 2015 by Vitalik Buterin. Ethereum enables developers to build and deploy decentralized applications (dApps).
DApps are apps that run on a decentralized network, as opposed to being centrally hosted. This makes them more resistant to censorship and tampering.
NOTE: Warning: Ethereum is a platform, not a coin. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. Ethereum is not a coin like Bitcoin or Litecoin; it does not have its own native currency or blockchain. Instead, developers can build applications on top of Ethereum’s network using Ether (ETH), the cryptocurrency associated with the platform.
Ethereum’s blockchain is powered by Ether. Ether is used to pay for transaction fees and gas costs.
It is also used as a form of incentive for miners, who validate transactions on the network.
While Bitcoin has been dubbed “digital gold”, Ethereum could be described as “digital oil”. This is because Ether is essential for powering the Ethereum network.
Without it, the network would grind to a halt.
So, what does this all mean? Is Ethereum a coin or a platform? The answer is both! While Ethereum does have its own cryptocurrency, it is primarily a platform for building decentralized applications.
10 Related Question Answers Found
When people talk about cryptocurrencies, they often focus on Bitcoin. But there’s another digital currency that’s been gaining ground lately, Ethereum. So, what is Ethereum?
When people think of cryptocurrency, Bitcoin is usually the first thing that comes to mind. It’s the original and still the most well-known. But there are other digital currencies out there that are trying to take Bitcoin’s throne.
There is much debate in the cryptocurrency community as to whether Ethereum is a token or a coin. While Ethereum does have its own blockchain, it also has characteristics that make it more like a token than a coin. For example, Ethereum is used to power the smart contracts that run on its blockchain.
In the world of cryptocurrency, the distinction between a coin and a token is often debated. On one side, there are those that say that Ethereum is a token. On the other hand, there are those that say that Ethereum is a coin.
Decentralized finance—often called “DeFi”—refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by decentralized technologies built on the Ethereum blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols that are changing the way we interact with financial services. By deploying immutable smart contracts on Ethereum, DeFi developers can launch financial protocols and platforms that run exactly as programmed and that are available to anyone with an Internet connection.
In 2015, the US Securities and Exchange Commission (SEC) released a report that classified digital currencies as commodities. In 2018, the SEC released another report that suggested that some digital tokens may be classified as securities. So, what is Ethereum?
This is a question that has been on the minds of many investors recently. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent ownership of property.
This is a question that has been asked by many in the crypto community, and one that still remains unanswered. The US Securities and Exchange Commission (SEC) has yet to give a definite answer as to whether Ethereum (ETH) is a security or commodity. However, there are certain arguments for both sides that can be made.
Since its launch in 2015, Ethereum has become one of the most popular cryptocurrencies in the world. Unlike Bitcoin, which is designed to be a digital currency, Ethereum is a decentralized platform that runs smart contracts. These contracts are written in code and can be used to create decentralized applications (dapps).
The world of cryptocurrency is a volatile one, and nowhere is this more apparent than with Ethereum. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
