One of the most intriguing use cases involving Ethereum is self-executing contracts, or so-called smart contracts.

This gives users control over their data and they have open use of the app as there’s no central authority managing everything. Rather than hosting software on a server owned and operated by Google ( GOOGL) or Amazon ( AMZN), where the one company controls the data, people can host applications on the Ethereum blockchain. The Ethereum network can also be used to store data and run decentralized applications. The transactions are processed and stored on the Ethereum network. “These can be simple movements of funds, but they may also be complex transactions that do anything from exchanging assets to taking out loans to acquiring a piece of digital art,” says Boaz Avital, head of product at Anchorage. As mentioned above, this network offers a variety of other functions outside of ETH. Ethereum is the blockchain network where Ether is held and exchanged. You can use Ether as a digital currency in financial transactions, as an investment or as a store of value. These applications can store and transfer personal data or handle complex financial transactions.Įther and Ethereum: What’s the Difference? But what’s unique about Ethereum is that users can build applications that “run” on the blockchain like software “runs” on a computer. It’s decentralized in that the network isn’t operated or managed by any centralized entity-instead, it’s managed by all of the distributed ledger holders.īlockchain transactions use cryptography to keep the network secure and verify transactions.Įther, the native token on Ethereum, can be used to buy and sell goods and services just like Bitcoin. It’s distributed in the sense that everyone participating in the Ethereum network holds an identical copy of this ledger, letting them see all past transactions. A blockchain is a decentralized, distributed public ledger where transactions are verified and recorded. The crypto is so popular that even other crypto coins run on its network.Ĭentral to Ethereum is its blockchain network. In the crypto’s own words, Ethereum is “a global, decentralized platform for money and new kinds of applications,” with thousands of games and financial apps running on top of the Ethereum blockchain.

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