What is ETHER ?
The Ethereum blockchain has been designed in a manner which crafts it into a global supercomputer. However the supercomputer is decentralised in nature and is above any kind of third party control or any censorship. The Ether native coin was created inorder to provide a different network apart from the Ethereum blockchain that is supposed to facilitate various on chain transactions as well as craft a model to incentivise the use of the Ethereum network. Thus keeping in mind the following philosophy the Ether native token was created which would support the Ethereum blockchain network.
The Ether native token
- The Ethereum Blockchain network is an ever expanding ecosystem comprising various decentralised applications existing on the network which are primarily used to facilitate any kind of peer to peer transactions between various users.
- Any action on the network is a transaction which consumes an amount of computer power of the entire system. The currency used to facilitate these transactions is Ether (ETH). The Ether fees on the network that originate due to the process of initiating transactions on the blockchain is referred to as “GAS.”
- Due to this specific metric the demand for Ether is managed wherein the service providers and the users have to initiate various transactions between themselves by using ETH. Thus ETH turns into a necessity inorder to initiate contact on the blockchain network.
Multiple utilities of Ether
- The Ether native token is used for compensating miners and paying off transaction fees however Ether is also utilised as a medium of exchange on the network. If you analyse the benefits of transacting with the Ether native token you will understand that the native token is significantly cheaper in nature compared to any traditional financial services
- Apart from that the speed of a transaction with Ether is faster than another transaction service. The decentralised architecture of the Ethereum blockchain network is completely censorship resistant which underlines the fact that any kind of third party intermediary cannot interfere in the transaction.
- The entire DeFi ecosystem is fuelled by Ether which is the most commonplace collateral used in order to initiate any kind of loans or interests etc.
The Ethereum network is planning to undergo a major upgrade wherein the Proof-of-stake consensus mechanism is about to be incorporated in the Ethereum blockchain network for the crypto mining community. The new upgrade will allow the users to stake the Ether coins in order to validate various new blocks. The new blocks are validated in return newly minted Ether and the gas fees included