What is The Difference Between Ethereum and Ether?

Ethereum has been in the cryptocurrency realm since 2014, when the founder Vitalik Buterin, a Russian programmer presented the white paper at the Bitcoin Conference in Miami.

Even after dominating the trade markets ever since it was introduced, there is a confusion, i.e What is the difference between the Ethereum and Ether?

The confusion is quite similar to the Bitcoin’s, where people often confused the Bitcoin with the technology underneath i.e. blockchain technology. I would try to make things as simple as it can get so that at the end of it, there is no confusion.

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What is Ethereum?

Ethereum is a complete blockchain ecosystem which provides various use cases and blockchain based solutions. While people who are either new or not informed consider the platform and the token the same thing.

Ethereum network allows for the creation of smart contracts, a platform to launch new DApps and even support tokenization, all on the same platform. So, when someone asks you what ethereum is? Instead of telling them that it is the second largest cryptocurrency, tell them its the first complete blockchain based ecosystem.

Ethereum got famous for its smart contracts earlier, which is a hardcoded program with preset requirements. Which if fulfilled the contract can self-execute itself, without the need of any human intervention.

Smart contracts became a rage and it’s still one of the preferred ways of making any new deal in the blockchain realm. However, you must not confuse the traditional contracts with the smart contracts as both of them are quite different. You can learn about the differences between the traditional contracts and smart contracts from our website.

So, Ethereum is not just another cryptocurrency but a complete ecosystem cum platform providing support for different Blockchain use cases.

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What is Ether?

Ether or ETH is the cryptocurrency which is a must for making any kind of transaction on the Ethereum network. It acts as a fuel or entity of exchange on the Ethereum Blockchain.

Imagine you are a citizen of the United States,  so in order to live and go on with your daily routine, you need US Dollars to purchase things. Imagine Ethereum as the United States and the Ether as the currency that you need to operate or live in that ecosystem.

Similarly, Blockchain is a technology and cryptocurrency is one of its use cases. In the past, people have often confused Bitcoin with blockchain or many think both are same.

Ether can be seen as the fuel required for the Ethereum network, it can be used for smart contracts, Dapps or for any kind of transaction you make on the network.

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Ethereum vs Ether

  • Ethereum is the ecosystem and Ether is the fuel or a token of exchange to operate within the Ethereum ecosystem.
  • You can buy, sell and trade Ether, not Ethereum.
  • Ethereum has different uses while the Ether has only one i.e act as an entity of exchange on the platform.


Blockchain Technology, the core of every cryptocurrency and altcoins have various different use cases. However, the technology got overshadowed by the success and noise around the trade market value of Bitcoin.

While Bitcoin Blockchain was invented as a financial entity and form of exchange only, Ethereum focused on building a platform as the founders saw the potential the technology rather than just creating another token. Ethereum focused on creating a true decentralized and Distributed ledger based network,  fueled by Ether.

So remember, Ethererum is an ecosystem and Ether is a token of exchange on the Ethereum network

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