What is the relationship between the price of Ether and the usage of the Ethereuem blockchain?

Or is a Ether coin simply a means of holding a piece of the value of the Ethereum blockchain (like a shareholder in a publically listed company)? (I know that gas is used to operate Ethereuem blockchain applications...so then I am wondering what the point of the Ether token coin is in terms of running the applications on the Ethereum blockchain).


Ether is used as an incentive for miners to process transactions, and to protect the network from being spammed since each computational step costs small units of ether.



Every transaction be it from account to account or a transaction with a smart contract, costs GAS. Gas has a value in ether, so basically each transaction costs ether, and that's what ether is used for.

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