Puzzled Between Ethereum And Ether? Know The Difference Here

If there is any other cryptocurrency which is much sought after Bitcoin in digital currency space, then it is none other than Ethereum. But most of the time, it has been found that people often get puzzled between Ethereum and Ether. Some may misunderstand as these to be the same, but it is not so, as there is a difference between the Ethereum and Ether, which you will get to know by reading this blog. 

To understand the difference more clearly, let us start by knowing about Ethereum and then we will move on to Ether and will help you in finding out the difference more clearly. So let’s get started.

Understanding Ethereum

To understand, Ethereum is a blockchain-based computing technology and an operating system which consists of scripting functionality. The Ethereum white paper came into being on 30th July 2015 and was founded by cryptocurrency researcher and programmer, Vitalik Buterin. Ethereum contains a decentralised virtual machine, which executes scripts through the international network of public nodes. It makes developers in structuring and deploying decentralised applications. 

Ethereum comes off as the best example in the movement of decentralisation. Like Bitcoin, Ethereum also works on blockchain technology, popularly known as the distributed ledger system, which eliminates the role of the third-party system, which have been performing the task of storing financial records and data. It uses nodes run by volunteers for replacing individual server headed by prime internet providers and services. 

The idea behind is to indicate the connectivity of nodes for becoming a world computer, aiming to provide infrastructure for all people, globally. And when it comes to ideal Ethereum, no one is authorised to have control over your data, which makes it fewer possibilities for hacking and shutdowns. 

Supporting New Type Of Application

Besides decentralisation of hosting duties and servers, Ethereum is supportive of a new application known as ‘dapp’. These applications functions are similar to the Ethereum network by being decentralised and making the best use of nodes via a global network, provided by Ethereum. 

Apart from it, Ethereum is considered to be a big factor for the launch of initial coin offerings (ICO), which contributes to fundraising and new startups, supporting new services and companies connected with the Ethereum network. 

Understanding Ether

Now comes our main topic, which was aimed to classify the difference between Ethereum and Ether. Now since you have briefly understood about the Ethereum and its functioning, then better get an update with knowledge of Ether, which has caused confusion with Ethereum for many. By reading about Ethereum news, it has been mentioned that Ether is known as cryptocurrency, which is generated by Ethereum technology. It is the only currency which is accepted in the payment of transaction fees. It is known to work like cash and does not involve any third party for approving transactions. Although you cannot completely term it as digital currency, instead it can be understood as a kind of fuel for the decentralised ethereum network apps.

To understand more clearly, let’s cite you an example to understand this cryptocurrency in an easier way. Suppose there is an app available in the Ethereum network, which allows the user to create, make modifications or even to delete simple notes. But to perform any of these tasks, the app needs processing power through the network. Then to cover the cost for the power, a marginal fee is needed for the payment, if a user wants to make changes to existing notes. And Ether is one such token to make the payment.


So now you must have understood the difference between the Ethereum and Ether. Or to say, Ethereum as technology and Ether being its cryptocurrency. Hope this blog must have proved useful in giving you the insight about the Ethereum as technology and about its working. Moreover, the confusion which you had between technology and cryptocurrency has now been cleared. 

Previously, people misunderstood about it and considered them as similar, which was not true. But now, this blog might have helped you form a better understanding. It must be noted that each particular action on Ethereum network needs computational time. Higher the time, higher will be the Ether fee to complete the action. This sets Ether apart from Bitcoin.