What is Ether?
Ether is an integral element of the Ethereum blockchain network that acts as the fuel of the network, keeping it nimble and functional. Although many believe that ether is the native digital currency of Ethereum, it acts as a means of incentive or form of payment for network participants to perform their requested activities on the network. network.
Ether (ETH) Overview
The Ethereum network supports building and running digital, decentralized applications (dApps) for businesses and individuals. Developers building Ethereum applications may need to pay fees to host and execute applications on the Ethereum network, and users using those applications may have to pay to use the application. Ether acts as a medium to enable such payments. A developer who builds an application that uses minimal network resources will pay less than someone who builds high-resource applications.
Ether is the fuel of Ethereum
Essentially, this method of ether mimics the behavior of fuel, rather than currency. An inefficient engine will require more fuel, while an efficient (application) engine will consume less ether fuel. The use of ether on the Ethereum network or in a decentralized application depends on the amount of computing power and time required for a particular process, request or transaction. The more computing power and time the application requires, the higher the ether fee that will be charged for the completed action. This mechanism is completely different from the operation of a standard cryptocurrency.
Ether executes such transactions and uses of applications and smart contracts on the Ethereum network, making it easier for network participants to build, store, execute, and use applications, and to pay and get rewarded in the Ethereum ecosystem.
Ether has a limited supply at 18 million ether per year. According to the agreement during the 2014 presale, 60 million ether was created and allocated to the contributors of the presale, and another 12 million was created for the development fund related to the original contributors and developers. head and the Ethereum Foundation. Currently, 5 ethers are generated per block (about 15 seconds) and allocated to the block miner. About 2-3 ethers are sometimes sent to another miner if they can also find a solution but the next block is not included. Such rewards are often referred to as uncle block rewards.
Ether can be mined by creating a new block and adding it to the blockchain. On average, a new block is added to the blockchain every 15 seconds, and the miner who created a new block is rewarded with 3 ethers. Ether supports CPU and GPU based mining. Currently, Ethereum is in the transition to Proof of Stake algorithm, and people will not be able to mine Ether anymore.
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