0

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).

1

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.

Related

| improve this answer | |
0

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.

| improve this answer | |

Not the answer you're looking for? Browse other questions tagged or ask your own question.