Ether Vs. Ethereum - How To Buy Ethereum In Canada?

Ether and Ethereum are often used interchangeably. But although the two are connected, these terms actually refer to different things. Let’s begin with a brief discussion about ether and Ethereum. Maybe we could be of some help, if you are looking up how to buy Ethereum in Canada.


Ethereum Vs. Ether

This is an open-source system that utilises blockchain technology. Through this platform, it’s possible to build decentralised applications - Dapps and write smart contracts. It is a type of code that allows agreements to be automatically executed.

And when it comes to Ether, we can say it is the fuel that keeps the Ethereum network going. Whenever a transaction needs to be completed or a contract needs to be activated, these digital tokens are used to pay the miners who lend their computing power to make things happen. It also doubles up as a cryptocurrency that can be sent to family, friends and business associates.

What is Ethereum?

The Ethereum network first launched in 2015, more than five years after Bitcoin made its debut. Although parallels are often drawn between these two blockchains, understandable given how they both boast a digital currency, they have been built with different purposes in mind. Ethereum allows developers to build applications that deliver compelling use cases for cryptocurrencies and distribute them without relying on a third party that would demand hefty levels of commission.

The Ethereum network’s lack of centralisation theoretically means there isn’t a single point of failure, as it is kept online by thousands of volunteers who allow their computers to be used as nodes.

As we mentioned earlier, smart contracts are a big part of the Ethereum network. Especially ambitious advocates claim that they have the potential to put lawyers out of jobs in the future – but it’s probably best to treat this with a healthy dose of scepticism. Smart contracts are effectively an agreement between two or more parties that has been translated into computer code and put on the blockchain. They are only activated when the predefined conditions in the contract have been met, and transactions are completed automatically thereafter.

However, challenges lie ahead. Scalability is a particular concern – and there are fears the platform doesn’t have the capacity to cater to growing levels of demand, meaning transactions are only completed slowly. Another hurdle lies in how Ethereum uses its own programming language – and as many developers haven’t coded with it before, there is a risk that they can create smart contracts which aren’t watertight.

What is Ether?

Its main utility is to help developers build decentralised applications and users who want to activate smart contracts. However, it can be bought and sold on exchanges just like Bitcoin.

Ether shouldn’t be confused with the other types of currencies that you may find on certain DApps, such as ERC-20 and ERC-721 tokens. These are often specially created for use within a certain application – serving as a currency for accessing a particular product or service, or denoting an ownership stake in a company or asset.

So, here are your differences between Ether and Ethereum set out once and for all. One is a digital currency, and the other is a blockchain platform. Next time you’re at a dinner party with some crypto nerds, you’ll be able to dazzle them with your in-depth knowledge.

Be it Ether or Ethereum, you might have to pay Canadian cryptocurrency tax. Try investing through one of the cryptocurrency exchange platforms for best features available and easy access to the apps.

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