If I want to use a smart contract, do I have to create a new currency/token, or can I do them using ethers?

If I can use ethers, what will be the consequences on the data stored and encapturing the execution of those smart contracts?



No need to create a token. That's just one potential use of a smart contract.

All Ethereum transactions are paid for with ether.

I can't understand what "what will be the consequences on the data stored and encapturing the execution of those smart contracts?" means. If you have more (specific) questions, please ask them.

  • Thanks for your help! my question relates to the following: If I would like to create a blockchain based provenance of some objects, where changes to the provenance happens only when registered by smart contracts, what will be the differences in reconstructing whole chain (or reconstructing the provenance of one object) if I use either ether or my own token. Or in other words, will creating my own token give me any advantages in managing my chain. – GeneralKenobi Jan 3 '18 at 16:13
  • I don't see how you even would use a token for this, let alone how that would differ from not using a token. What would the token be for? When would tokens be transferred? – user19510 Jan 3 '18 at 16:14

As @smarx said, there's no need to create a token. I think people and companies create tokens because people seem to like earning/buying virtual points.

You can think of a smart contract like a computer software, which is executed not on a single computer or server, but by every ethereum node in the network. These smart contracts are written in such a way that for a certain state of the blockchain, the code has the same output.

So your smart contract can contain almost any business logic you need. The smart contracts for the tokens have a rather simple business logic coded into them: issue a certain number of tokens, keep track of what address what balance it holds, offer the possibility to transfer this balance between 2 addresses and that's kind of it.

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