What is Ether (ETH)?

The crypto-universe used Ethereum as the name of the cryptocurrency that prices the fuel of the Ethereum Network. The actual term, Ether, although makes no difference to the trader has vast difference in technicality. Ether is the actual cryptocurrency while Ethereum provides the platform for the applications. The transaction fees is paid in ‘Ether’. Hence, the price of Ether (ETH) can be determined by knowing the status of the distribution of Ether and its growth prospect.

The maximum cap on the supply of Bitcoins was established by Satoshi Nakamota during its creation to avoid inflation of the currency. Ether on the other hand currently has no such market cap. There are around 72 Million Ether (ETH) tokens that were pre-mined and sold to users and creators. There is proof of work mining as well which adds 3 new Ether token every 15 seconds. Till September 2018 there were around 102 Million Ether Tokens in circulation. There is no limit to that number as of now, it is perceived that the maximum cap will be imposed after PoS (Proof Of Stake) as all coins would have to be pre-mined to follow this protocol.

Ether (ETH) is the fuel that keeps the network running, charging transaction fees to settle each transaction on the Ethereum Network. Ethereum saw exponential growth 3 years and have hundreds of ICOs built on it. The network hence does a lot of work, and a lot of money is paid and earned in Ether. The Market Capitalization according to coinmarketcap.com is USD 20 billion with a daily volume of over USD 1 billion.

Ether can be divided to 8 decimal points of 1 billionth of a unit, ‘GWei’. Gas is the output cost that is equivalent to the amount of processing unit, it is measured in Wie. The cost of storing 1 KB worth of data is 3 dollars on the average. Storage on the Ethereum Blockchain although secure is expensive and cost ineffective at the current moment before its protocol update.

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