Ether can be purchased on a cryptocurrency exchange and stored in a crypto wallet and custodian like Gemini.

The Ethereum Virtual Machine (EVM) is considered Turing-complete and computationally universal. It allows developers to build Dapps that run on the EVM and pay for computational resources in ether. The EVM also allows developers to build their own digital asset tokens or layer 2 tokens on top of the Ethereum network. A number of these layer 2 tokens use the ERC-20 standard for fungible tokens. Many of these ERC20 tokens were built during and contributed to the Initial Coin Offering (ICO) boom of 2017. Other standards for layer 2 tokens have emerged such as the ERC-233 standard for fungible tokens and the ERC-721 standard for non-fungible tokens (also known as NFTs or “nifties”). The Gemini dollar , a stablecoin issued and operated by Gemini, uses the ERC-233 standard, whereas the blockchain game Cryptokitties uses the ERC-721 standard for non-fungible tokens.

Ether is issued at a constant annual linear rate via the block mining process. This rate is 0.3 times the total amount of ether sold (~60 million ETH) during the ether presale in June 2014, which equals 18 million ETH. This means that 18 million ETH will be issued every year in perpetuity. This is in contrast to Bitcoin, which has a supply that is fixed at 21 million BTC. While the overall supply of Ethereum will continue to increase, the growth rate of its money supply will decrease over time because the amount of ether issued per year is fixed. Because the inflation rate of ether decreases every year, ether is considered a disinflationary digital asset.

No. Ethereum mining is no longer necessary following “The Merge,” as the Ethereum blockchain network now uses a proof-of-stake (PoS) transaction validation method that doesn’t require mining for ether.

Prior to “The Merge,” Ethereum had been using a proof-of-work (PoW) transaction validation method. This consensus mechanism both safeguarded the integrity of the Ethereum blockchain and required miners to run smart contracts during the mining process, which created a decentralized pool of computation resources that forms a decentralized, global computer. As a result, Ethereum mining created useful work beyond securing the Ethereum network.

Proof of Stake (PoS) is emerging as one of the most widely used blockchain consensus mechanisms in existence. PoS networks incentivize participants to stake native coins, like ether, in a network of validator nodes. Upon the close of a transaction block, validator nodes are eligible to be randomly chosen to validate block data, thus generating the subsequent block, and earning native coins as a reward. A robust nodal network offers increased network security, resiliency, and computational power. 

Proof-of-Stake systems also generally enable validator nodes to contribute democratically in decentralized platform governance through voting on key updates and decisions. While still a recent innovation, PoS networks are already proving they can be faster and more scalable than Proof-of-Work (PoW) blockchains, in addition to being more energy efficient.

Despite being the two most popular cryptocurrencies on the market, Bitcoin (BTC) and Ethereum (ETH) are quite different from one another. As mentioned above, a common analogy used to compare Bitcoin and Ethereum is that Bitcoin is like gold and Ethereum is like oil or electricity.

Bitcoin is the oldest and most popular cryptocurrency. When looking at their overall utility, Bitcoin represents a store of value whereas Ethereum provides a decentralized payment network that offers wider possibilities like trading NFTs and creating smart contracts. Other cryptocurrencies are issued on the Ethereum network, and Ethereum is responsible for pioneering the field of decentralized finance.

While Ethereum’s versatility is a plus, it also comes with some drawbacks including higher gas fees, which can be significant, particularly on smaller transactions.

However, Ethereum transactions went through a major change when it comes to energy consumption. The “Merge,” a transition from using a proof-of-work (PoW) transaction validation method to a proof-of-stake (PoS) transaction validation method, is expected to reduce energy costs by 99%. Ethereum’s transition to a proof-of-stake blockchain (PoS) began in 2022, and continues into 2023. Bitcoin (BTC) is still using the PoW mechanism, causing a significantly higher carbon footprint than Ethereum moving forward.

Bitcoin has a capped supply vs. Ethereum which has a limitless supply.