$ETH

ETH (also known as Ether) is the native cryptocurrency of the Ethereum network. Just as Bitcoin (BTC) is the main currency of the Bitcoin blockchain, ETH is the primary digital asset of the Ethereum ecosystem.

What is ETH used for?

ETH has several purposes both within and outside the Ethereum network:

1. Payment of Fees (Gas)

Every time someone executes an operation on the Ethereum blockchain (token transfer, interaction with smart contracts, creation of NFTs, etc.), a fee called gas fee is charged. This fee is paid in ETH.

2. Medium of Exchange

ETH can be used as a digital currency for transactions between individuals or businesses, both in decentralized environments and in marketplaces and services that accept cryptocurrencies.

3. Execution of Smart Contracts

To run decentralized applications (dApps) or smart contracts, it is necessary to pay for these services using ETH as the fuel of the system.

4. Staking in Ethereum 2.0

With the launch of the Ethereum 2.0 updates, ETH can be “locked” as collateral (staking) to help validate transactions and ensure the security of the network, and in return, the user receives rewards.

5. Collateral in DeFi Protocols

ETH is widely used as collateral in decentralized finance (DeFi) applications, enabling the generation of loans, yields, and other digital financial operations.