Ether (Ether, ticker ETH) is the native cryptocurrency of the Ethereum network, the second-largest blockchain platform by capitalization after Bitcoin. In the professional slang of the Russian-speaking crypto community there are playful sound-alikes of the name — "kefir," "efir," "zemfir" — but the same asset is hidden behind them. Ether plays a dual role: it serves as a means of settlement and at the same time is used to pay for computations within the network.
What Ether is responsible for in the Ethereum network
The main task of ETH is paying the so-called gas fee. Any action in the network, whether a transfer of funds or the launch of a smart contract, requires computing resources, and the fee for them is paid precisely in ether. Without this mechanism the network would not be able to protect itself from overload and spam.
- a means of paying fees for transactions and the operation of smart contracts;
- an asset for storing value and for exchange;
- a staking instrument for participating in securing the network.
Ethereum was originally created not just as a payment system but as a platform for decentralized applications. That is why ether is closely connected with the ecosystem of DeFi, NFTs, and tokens that are issued on top of this blockchain according to common standards.
