Ether and Ethereum are two terms which are usually used in the same context, but they are actually two completely different things. In today’s post, we are going to explain you the difference between the terms Ether and Ethereum in small chunks which are easy to understand.

– What is the difference between Ethereum and Ether?

Let’s just keep it short and simple – the main difference between these two terms is that Ethereum is a network, while Ether is the “fuel” used to power that network.

Please remember that Ether is not fuel. But, that is exactly the purpose that it has for the Ethereum network.

Now, as you are more or less familiar with what we are talking about, let’s dive into some details about them.

– What is Ethereum?

Ethereum is a decentralized platform which is used to run smart contracts. Such intelligent agreements are programmed in the form of dapps (decentralized apps). And well, dapps will completely change the world as we know it now. Some of the real – world applications that it has been in the Healthcare industry, banking and privacy.

Ethereum also enables programmers to build cryptocurrencies which ware based on its technology, as it is an entirely open source. Have you ever heard the word “ICO”? It is an abbreviation for “Initial Coin Offering,” and it is also similar to what an IPO is in the stock market. There have also been some cases where ICO’s recollected millions of dollars in just seconds.

This means making the creators millionaires in less than one minute (literally).
Some of the experts also refer to it as the world computer, which is one very accurate description.

– What is Ether?

Just like an airplane needs fuel to fly, Ethereum does too to work. So, Ether is the “fuel” of Ethereum. Ether can also be bought and sold, just like a regular oil can and the price that it has also fluctuated, by the offer and demand law.

More technically, Ether is defined as the incentive provided to miners and to developers to keep the Ethereum network safer and efficient as well.

Ether is not infinite, just like any other asset. Also, Ether cannot be replicated infinitely, no matter the fact that it is a computer program. Before the pre-sale which happened in 2014, it was agreed y all invested parties that the supply needs to be limited to 18 million Ether per year and in that 60 million of Ether should be made available right from the beginning.

– To summarize

There are three main differences between Ether and Ethereum, and they are the following:

– Ethereum is a network and Ether is the crypto – fuel which is used to power the network;

– While Ether can be traded and appreciates or depreciates, Ethereum cannot be trading at all.

– Ethereum has a lot of real-life uses, such as healthcare, banking, etc. while the only purpose of Ether is to keep the Ethereum network running.

We hope that we have managed to clear up your mind regarding the difference between these both terms.


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