What is ETH used for?

Ether (ETH) can be used as a peer-to-peer 'permissionless' digital currency similar to Bitcoin and Bitcoin Cash. This means you don't rely on an intermediary like a bank or payment provider. Instead, you're free to send and receive ETH to whoever you want - whenever you want - without asking for permission (as long as you're using a non-custodial wallet like the Bitcoin.com Wallet). And just like with Bitcoin, this is done pseudonymously, meaning your identity isn't directly tied to your digital wallet.

Read more: What is gas and how do fees work in Ethereum?

ETH is also the currency used to pay for the resources of the Ethereum network. At the simplest level, this works nearly identically to Bitcoin. To send one ETH to your friend, for example, you must attach a fee which is paid in ETH. The fees goes to the 'miners' ('validators' in ETH 2.0) who ensure transactions are processed in accordance with the rules of the protocol. However, the Ethereum network can do more than just move ETH around. That's because Ethereum is designed to be a type of shared 'computer' that's capable of, in theory, any type of computation. Seen thus, ETH is the fuel needed to power the computer. This means that whenever you want to use applications built on Ethereum, you'll need to pay fees in ETH.

Consider, for example, one of the most widely used applications on the Ethereum network: a decentralized exchange (DEX). Anytime you trade one asset for another on this DEX, you'll need to use ETH to pay for the required "computing" (even if you're not trading ETH).

Read more: Learn about smart contracts and how applications are built on Ethereum.

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