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.

Было полезно?

Похожие статьи

Начните здесь →
What is Ethereum?

Understand Ethereum's key characteristics.

Читать статью →
Who created Ethereum?

Understand the origin and early history of the Ethereum protocol.

Читать статью →
How to buy ETH

Learn how to buy ETH and hold it securely in a digital wallet you control.

Читать статью →
How was ETH initially distributed?

Learn about the 2014 crowdsale, the initial distribution of ether (ETH), and why it's important.

Читать статью →
What's a smart contract?

Get the basics on the "software" that runs on the Ethereum shared computer.

Читать статью →
What are ERC-20 tokens?

Learn the basics of the Ethereum token standard, what ERC-20 tokens are used for, and how they work.

Читать статью →
What's a DApp?

Understand the basics of Decentralized Applications (DApps) on decentralized networks; their features and their current limitations.

Читать статью →
What's decentralized finance?

Learn what makes decentralized finance (DeFi) apps work and how they compare to traditional financial products.

Читать статью →
What is Ethereum's monetary policy?

Learn about the issuance rate of ETH and how it's governed.

Читать статью →
What is ETH gas and how do fees work in Ethereum?

Learn about the unit for measuring transaction fees in Ethereum, get details on the Ethereum fee market, and discover how to customize the fees you pay.

Читать статью →
What is EIP 1559?

Understand how EIP 1559 overhauls the fee market in Ethereum and what it means for ETH's circulating supply.

Читать статью →
How does governance work in Ethereum?

Why governance is needed, Ethereum governance in practice, the concept of credible neutrality, and more.

Читать статью →
What is Ethereum 2.0?

ETH 2.0 is an updrade to Ethereum that aims to increase the speed, efficiency, and scalability of the Ethereum network while not compromising its security or decentralization.

Читать статью →
How to create an Ethereum wallet

Creating an Ethereum wallet is as easy as installing software on your mobile device or laptop/desktop.

Читать статью →
Начните здесь →
Начните безопасно инвестировать с Bitcoin.com Wallet
Создано более кошельков

Все, что нужно для безопасной покупки, продажи, обмена и инвестирования биткоинов и криптовалюты

Bitcoin.com в вашем почтовом ящике

Еженедельное краткое изложение важных новостей, а также образовательные ресурсы и новости продуктов и услуг, поддерживающих экономическую свободу.