They look similar, sound similar, and even share the same root word. But are they really the same?
Today, on Crypto Terminology: A to Z, we’ll unpack the differences and provide clarification on just how Ether, Ethereum and Ethereum 2.0 differ.
Let’s begin with Ethereum.
Ethereum acts as a single decentralized computer, allowing thousands of independent computers around the globe to monitor and verify network activities. Through this platform, dApps (remember this?) and smart contracts can be built.
In an ideal model, no single entity has full control over one’s personal data, making it less vulnerable to hacks or shutdowns.
How does the Ethereum network run applications or even monetize work?
Call it the cryptocurrency of the Ethereum network, Ether (ETH) is a digital asset-bearer, quite like cash, bonds or other securities.
There are several ways to get your skin in the game, including:
- Through wallet transfers from another person or entity
- Purchases using fiat (on Bybit, this can be done through the Fiat Gateway)
- Traded on exchange platforms, like Bybit’s ETHUSD pair
On Jan. 10, 2021, Ether price touched a high of $1,355 before dipping nearly 20% in the days that followed. Still, many see bullish signs ahead for the world’s second largest cryptocurrency by market cap.
Among other more important factors, some people say that the recent Ethereum upgrade, also known as Ethereum 2.0, could feed into investors’ appetites.
Ethereum 2.0, also known as Eth2 or “Serenity”, was launched on Dec. 1, 2020. Investors and proponents of Ether are keeping an eye on this network upgrade, which they say will solve long-standing capacity issues and allow thousands more transactions to take place every second. Heightened levels of security was also promised.
Do you think Ethereum 2.0 could fuel the price of Ether to greater heights?