Ether (ETH)
For those wondering what Ether is, it is the native cryptocurrency of the Ethereum network. Unlike Bitcoin, which primarily serves as digital gold, Ether has a broader role. It acts as fuel for the network, needed to carry out transactions and run applications on the Ethereum platform.
Executing transactions and smart contracts on the network requires gas, a unit of measurement for the required computational effort. Users pay gas fees in ETH to incentivize validators and ensure the security and smooth operation of the network.
The amount of gas required depends on the complexity of the transaction, and gas fees fluctuate based on network demand.
Smart contracts
A standout feature of Ethereum is its support for smart contracts. These are self-executing contracts with the terms of the agreement written directly into the code. They automatically execute and enforce permissions when predefined conditions are met.
These smart contracts run on the Ethereum Virtual Machine (EVM), a decentralized computing environment that ensures uniform script execution across the network. EVM allows developers to deploy complex dapps and automate transactions without the need for intermediaries.
