When it comes to digital currencies, Ethereum is second to none. It is the second-largest cryptocurrency by market capitalization, behind only Bitcoin. But what exactly is Ethereum? Is it simply a digital currency or is there more to it than that?
For starters, Ethereum is a decentralized platform that runs smart contracts. These contracts are apps that run exactly as programmed without any possibility of fraud or third-party interference.
In other words, they are programs that cannot be tampered with.
Ethereum also has its own cryptocurrency, called ether. Ether is used to pay for transaction fees and computational services on the Ethereum network.
So, in a nutshell, Ethereum is a decentralized platform that runs smart contracts and has its own cryptocurrency (ether). Now that we know what Ethereum is, let’s take a closer look at how it works.
The Ethereum platform is powered by the blockchain. The blockchain is a shared public ledger on which all transactions are recorded.
Every time a transaction is made, it is recorded on the blockchain. This makes it possible to trace back every single transaction that has ever been made on the network.
The blockchain is also used to power the smart contracts on the Ethereum network. When a contract is created, it is stored on the blockchain. When someone wants to use that contract, they must first pay a fee in ether.
The fee goes to the miners who verify and confirm the transaction. Once the transaction is verified, it is added to the blockchain and the contract is executed.
So, to answer the original question, yes, there is an actual Ethereum coin (ether). It plays an important role in powering the Ethereum network and its smart contracts.