Ether Differs From Other Cryptocurrencies

[Crestie C. Tuvilla]

Each particular action on the ethereum network or in a decentralized app requires a different amount of computational power and time. The greater the power and time required, the higher the ether fee for the action to be completed. In this way, ether is different from a digital currency like bitcoin. (See more: Bitcoin Vs Ethereum: Driven by Different Purposes.)

There are other ways that it differs. For instance, many digital currencies have hard caps, or maximum numbers of tokens or coins that can be mined. Ether does not have a limit of this type. 18 million ether can be mined per year. 60 million ether was bought by users in a 2014 crowdfunding campaign, while another 12 million went to the Ethereum Foundation.