What is The Difference Between Ethereum and Ether?

Ethereum has been in the cryptocurrency realm since 2014, when the founder Vitalik Buterin, a Russian programmer presented the white paper at the …

Jan 24, 2019 01:30&nbspUTC

| Updated:

Jan 24, 2019 at 01:30&nbspUTC

By&nbspPrashant Jha

Ethereum has been in the cryptocurrency realm since 2014, when the founder Vitalik Buterin, a Russian programmer presented the white paper at the Bitcoin Conference in Miami.

Even after dominating the trade markets ever since it was introduced, there is a confusion, i.e What is the difference between the Ethereum and Ether?

The confusion is quite similar to the Bitcoin’s, where people often confused the Bitcoin with the technology underneath i.e. blockchain technology. I would try to make things as simple as it can get so that at the end of it, there is no confusion.

You May Also Read: How To Invest In Ethereum in 2019?

What is Ethereum?

Ethereum is a complete blockchain ecosystem which provides various use cases and blockchain based solutions. While people who are either new or not informed consider the platform and the token the same thing.

Ethereum network allows for the creation of smart contracts, a platform to launch new DApps and even support tokenization, all on the same platform. So, when someone asks you what ethereum is? Instead of telling them that it is the second largest cryptocurrency, tell them its the first complete blockchain based ecosystem.

Ethereum got famous for its smart contracts earlier, which is a hardcoded program with preset requirements. Which if fulfilled the contract can self-execute itself, without the need of any human intervention.

Smart contracts became a rage and it’s still one of the preferred ways of making any new deal in the blockchain realm. However, you must not confuse the traditional contracts with the smart contracts as both of them are quite different. You can learn about the differences between the traditional contracts and smart contracts from our website.

So, Ethereum is not just another cryptocurrency but a complete ecosystem cum platform providing support for different Blockchain use cases.

You May Also Read: 5 Popular Use Cases of Ethereum Smart Contracts

What is Ether?

Ether or ETH is the cryptocurrency which is a must for making any kind of transaction on the Ethereum network. It acts as a fuel or entity of exchange on the Ethereum Blockchain.

Imagine you are a citizen of the United States, so in order to live and go on with your daily routine, you need US Dollars to purchase things. Imagine Ethereum as the United States and the Ether as the currency that you need to operate or live in that ecosystem.

Similarly, Blockchain is a technology and cryptocurrency is one of its use cases. In the past, people have often confused Bitcoin with blockchain or many think both are same.

Ether can be seen as the fuel required for the Ethereum network, it can be used for smart contracts, Dapps or for any kind of transaction you make on the network.

You May Also Read: How To Buy Ethereum?

Ethereum vs Ether

  • Ethereum is the ecosystem and Ether is the fuel or a token of exchange to operate within the Ethereum ecosystem.
  • You can buy, sell and trade Ether, not Ethereum.
  • Ethereum has different uses while the Ether has only one i.e act as an entity of exchange on the platform.

Conclusion

Blockchain Technology, the core of every cryptocurrency and altcoins have various different use cases. However, the technology got overshadowed by the success and noise around the trade market value of Bitcoin.

While Bitcoin Blockchain was invented as a financial entity and form of exchange only, Ethereum focused on building a platform as the founders saw the potential the technology rather than just creating another token. Ethereum focused on creating a true decentralized and Distributed ledger based network, fueled by Ether.

So remember, Ethererum is an ecosystem and Ether is a token of exchange on the Ethereum network

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Prashant Jha

As a content writer Prashant believes in presenting complex topics in simple laymen terms. He is a tech enthusiast and an avid reader.

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Blockchain.com becomes latest crypto wallet adding support for Bitcoin SV

Leading crypto wallet Blockchain.com has become the latest service to onboard support for Bitcoin SV, as the currency continues to gain traction as …

Leading crypto wallet Blockchain.com has become the latest service to onboard support for Bitcoin SV, as the currency continues to gain traction as the closest reflection of Satoshi’s original vision.

According to a post on the firm’s website, the decision to onboard Bitcoin SV support comes after the firm monitored the progress of SV since the November hard fork, providing Blockchain.com users with access to Bitcoin SV transactions for the first time.

While initial support is better than nothing, Blockchain.com is yet to roll out comprehensive support for Bitcoin SV, which is expected to come at a later date. According to the Blockchain.com team, “We have been tracking Bitcoin SV chain closely and will now offer limited, close out transaction support for Bitcoin SV (BSV). You will be able to view your balance, exchange BSV for BTC, BCH, ETH, and XLM through Swap, and send BSV to any address.”

To access BSV services and tokens, log into the Blockchain.com wallet through any web browser, select Wallets and Addresses under the Settings option. On mobile, simply log into the Blockchain app and click “Log in to Web Wallet’ in the side navigation.

While there was no date set on plans for further integration, Blockchain.com said it would keep customers updates of any further changes to functionality.

The news comes as the latest endorsement of Bitcoin SV from a major cryptocurrency service, in response to growing demand from both consumers and merchants for access to the full range of payment services on Bitcoin SV through their crypto wallets.

Offering lower fees, faster transaction times and capacity for transactions at scale, Bitcoin SV is fast becoming the preferred option for payments, including cross-border and B2B payments.

According to Bitcoin SV, the raison d’etre of the cryptocurrency makes it the ideal choice for both consumers and businesses.

“Bitcoin SV is the original Bitcoin. It restores the original Bitcoin protocol, will keep it stable, and allow it to massively scale. Bitcoin SV will maintain the vision set out by Satoshi Nakamoto’s white paper in 2008: Bitcoin: A Peer-to-Peer Electronic Cash System.”

“Reflecting its mission to fulfil the vision of Bitcoin, the project name represents the “Satoshi Vision” or SV…Bitcoin SV is intended to provide a clear choice for miners and allow businesses to build applications and websites on it reliably.”

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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Rumor: Telegram (GRAM) Planning Token Launch for March

Cryptocurrency, Telegram (GRAM)–Cryptocurrency adoption and development continues to grow into the first month of the year. While prices for …

Cryptocurrency, Telegram (GRAM)–Cryptocurrency adoption and development continues to grow into the first month of the year. While prices for Bitcoin and other top coins remains stable into 2019, blockchain and crypto have found a resurgence in messaging services looking to utilize a secure digital payment.

Last year brought about the bombshell rumor that Facebook, which has been both a supporter and detractor of cryptocurrency, was planning to launch a stablecoin on its WhatsApp messaging service. The social media giant, who established a blockchain-based payment division early last year, was also heavily criticized for joining Twitter and Google in implementing a crypto advertising ban that added fuel to the already crushing bear market.

Now Telegram, a top 10 messaging app, is reported to be launching its token and Main Net as early as March 2019. Speaking with CoinTelegraph, an anonymous source who claims to be close to the project says the messaging giant is looking to get its blockchain-based network and token to market within the next several months.

The previously announced project, which will go under the name Telegram Open Network (TON), raised close to $1.7 billion last year in two rounds of private initial coin offering (ICO) funding. Despite the maligned landscape of ICOs, which by some reports has a fraudulence rate close to 80 percent, the Telegram ICO has been hailed as a successful use of the model and one that provides a blueprint for other established companies to explore the space. Telegram, who reports having an active monthly user count of 200+ million, has catapulted to the top ten of app-based messaging platforms, providing an extensive source of exposure for blockchain and cryptocurrency.

According to the source, who claims being close to Telegram founder and CEO Pavel Durov, the estimated March release is subject to change, with Durov being reluctant to give a definite date for the token and mainnet launch. In a separate report, Russian media outlet The Bell likewise commented on TON’s near readiness, stating that Durov has told investors the project is 90 percent complete, but to anticipate the possibility of delays. TON, which will make up the network portion of Telegram’s blockchain project, is planning to utilize a native cryptocurrency “Gram”, with the ultimate goal of the service to be a “new way of exchanging data.”

While the messaging service has been forthright about its plans to establish a blockchain and crypto-based platform, not everyone has been excited for the project. Following news last October that the project was approaching its release, the country of Iran issued a statement against Telegram and companies which would attempt to cooperate with the app. In particular, the Iranian government has claimed that the project undermines national security, and has made an effort to restrict and ban the service dating back to April 2018.

In addition, Russia has also made an effort to ban the messaging service, despite being the birth country of its founder and CEO Durov. In a high-profile invasion of privacy, the Russian government attempted to force Durov into sharing the app’s encryption keys, claiming that it was a requisite under their current telecom laws. Durov’s refusal, while detrimental to growing the service in Russia, has been widely regarded as a positive move towards protecting privacy and free speech.

In Pennsylvania, crypto exchanges do not require money transmission license

The U.S. state of Pennsylvania has confirmed that cryptocurrency exchanges are not money transmitters, and therefore do not require a money …

The U.S. state of Pennsylvania has confirmed that cryptocurrency exchanges are not money transmitters, and therefore do not require a money transmission license to do business in the state.

The state Department of Banking and Securities (DoBS) said it had issued clarifications following a spate of enquiries from crypto businesses in the state. Confirming cryptocurrencies were not ‘money,’ those companies involved in crypto exchange were exempt from the provisions of the Money Transmitter Act and the Money Transmission Business Licensing Law.

As a result, the department stated, crypto exchanges do not need to be licensed in the same way as money transmission businesses.

The act restricts the definition of money to apply only to U.S. government issued fiat currency, and thus far “no jurisdiction in the United States has designated virtual currency as legal tender.”

Businesses transmitting money between parties are obliged by law to charge a fee for the service, and require a license from the DoBS. However, because crypto exchanges are not transferring fiat, and transactions are conducted indirectly between bank accounts, the guidance says they fall outside the scope of the legislation.

According to the clarified guidance, the same rules apply to other crypto businesses, such as ATMs, vending machines and kiosks.

The department noted, “In both the one-way and two-way Kiosk systems, there is no transfer of money to any third party. The user of the Kiosk merely exchanges fiat currency for virtual currency and vice versa, and there is no money transmission.”

The clarification comes three years after the Pennsylvania government said it was looking to update the definition of money to include cryptocurrencies, in an ultimately ill-fated attempt to revise the law which fell with the unsuccessful government budget of the day.

At a federal level, however, firms engaging in ICOs would likely still fall within the scope of the money transmission regulations.

Back in March last year, the position for ICOs and token sales was confirmed by the Financial Crimes Enforcement Network.

“An exchange that sells ICO coins or tokens, or exchanges them for other virtual currency, fiat currency, or other value that substitutes for currency, would typically also be a money transmitter,” it stated.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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Blockchain Investor Claims Bitcoin (BTC) Will Plunge To $0

Bashing Bitcoin (BTC) has apparently become a popular trend at Davos’ recent World Economic Forum event. More specifically, the cryptocurrency …

Economists Bash Bitcoin In The Swiss Alps

Bashing Bitcoin (BTC) has apparently become a popular trend at Davos’ recent World Economic Forum event. More specifically, the cryptocurrency has become a punching bag. Just yesterday, per previous reports from Ethereum World News, Huw Van Steenis, the senior advisor to Bank of England’s governor, Mark Carney, bashed this nascent asset class.

Speaking to Bloomberg in a candid interview, Steenis, who purportedly is compiling a report about the future of finance, surprisingly claimed that cryptocurrencies, like Bitcoin aren’t on his radar, or list of concerns for that matter. The former Morgan Stanley economist then remarked that blockchain-based assets “fail” the basic tests that financial services are de-facto run through. Steenis explained that BTC, along with other digital assets, is slow, fail to hold their value over time, and aren’t a viable, bonafide Medium of Exchange (MoE).

Tech Investor Claims BTC Will Fall To $0

Just one day later, BTC fell victim to another attack, as a technology investor and entrepreneur took to a CNBC-hosted panel to bash the blockchain-based digital asset. According to CNBC post-mortem on the manner, Jeff Schumacher, the founder of BCG Digital Ventures, a corporate investment and tech incubator group, claimed that the flagship cryptocurrency could capitulate to a value of zilch eventually.

Speaking to a crowd of economists, global leaders, notable investors, and corporate C-suiters, Schumacher explained that he “believes it will go to zero,” adding that he thinks that it (or the technology underlying Bitcoin) is a “great technology.” However, the BCG founder made it clear that he doesn’t think that blockchain technologies should be applied to currencies, accentuating that its underlying value isn’t based on anything. Like many traditionalists with a vested interest in the centralized system, Schumacher fails to see the value of a decentralized, immutable, cross-border, rapid, uncensorable current that transcends the boundaries imposed by financial incumbents.

Instead of lauding blockchain technologies for their potential revolutionary use cases in finance, Schumacher instead touched on the innovation’s ability to facilitate “open decentralized ecosystems,” which would be the global protocols and infrastructure that businesses could run on.

Yet, some weren’t in agreement with Schumacher’s inflammatory quip. Glenn Hutchins, the chairman of Virtu-affiliated North Island, a financial technology services company, claimed that BTC will likely grow to have a notable role as a Store of Value (SoV). Hutchins noted that BTC’s role “in the system” could be as pseudo-gold in a digital economy, rife with arrays of tokens that serve every use case imaginable.

Hutchins isn’t the only notable investor to think of Bitcoin as a digital semblance of the orange-esque precious metal. As reported by Ethereum World News multiple times previously, a number of pundits have overtly claimed that BTC’s foremost use case is as digital gold.

Alistair Milne, the CIO of Digital Currency Fund, claimed that Bitcoin has seen its Store of Value (SoV) proposition become more apparent. More specifically, he noted that Bitcoin’s investors are now “very aware that BTC is like trading gold with 100x leverage,” along with the fact that the flagship cryptocurrency’s inflation rate will be lower than that of the precious metal. And, as “no one appears to doubt the usefulness of gold,”

The Winklevoss Twins, the co-founders of the Gemini Exchange, recently claimed that Bitcoin “better at being gold than gold itself.” Twin Tyler noted that as this industry continues to develop, BTC will continue eating up bits of gold’s market capitalization, until the newfangled cryptocurrency passes its (arguably worse) physical counterpart.

Lou Kerner has also recently chimed in on the matter. Kerner, the founding partner at CryptoOracle, divulged that the cryptocurrency’s portability, ease-of-use, divisibility, and scarcity, make it a viable alternative to precious metals, and will allow BTC to eventually surmount its quintuple-digit cell.

Title Image Courtesy of Descryptive.com via Flickr