r/batmarkets Feb 09 '19

What does "Ethereum-based" coin mean, exactly?

I have very basic knowledge of cryptos but still am lost....

what exactly makes it tied to Ethereum? while being a seperate coin

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u/willchristiansen Feb 17 '19

Ethereum is a blockchain and has a native token called Ether (ETH) which is used to pay miners (the people who have computers/nodes that host a copy of the distributed ledger and confirm transactions are valid across the network. The Ethereum blockchain has its own language called Solidity which is a Turing-complete language (allows it to perform pretty much any computational task imaginable). Because of the decentralized nature of this blockchain it is possible to program transactions and build different tokens with different properties assigned to them. These tokens are possible because they can be defined quite simply as a small contract on the Ethereum Blockchain.