What is Ether (ETH) used for? | Get Started with Bitcoin.com (2024)

Ether (ETH) can be used as a peer-to-peer 'permissionless' digital currency similar to Bitcoin. This means you don't rely on an intermediary like a bank or payment provider. Instead, you're free to send and receive ETH to whoever you want - whenever you want - without asking for permission (as long as you're using a self-custody wallet like the Bitcoin.com Wallet app). And just like with Bitcoin, this is done pseudonymously, meaning your identity isn't directly tied to your digital wallet.

ETH is also the currency used to pay for the resources of the Ethereum network. At the simplest level, this works nearly identically to Bitcoin. To send one ETH to your friend, for example, you must attach a fee which is paid in ETH. The fees goes to validators, who are network participants that ensure transactions are processed in accordance with the rules of the protocol. However, the Ethereum network can do more than just move ETH around. That's because Ethereum is designed to be a type of shared computer that is capable of, in theory, any type of computation. Seen thus, ETH is the fuel needed to power the computer. This means that whenever you want to use applications built on Ethereum, you'll need to pay fees in ETH.

Table of Contents

1. Smart Contracts and Decentralized Applications (dApps)
2. DeFi (Decentralized Finance)
3. NFTs (Non-Fungible Tokens)
4. Staking and Ethereum 2.0
5. Layer 2 Scaling Solutions
6. The Ethereum Virtual Machine (EVM)
7. Token Standards and ERC-20 Tokens
8. Future Developments and Upcoming Projects