What is the difference between cETH and Ethereum?
The main difference between cETH and Ethereum is that cETH is a synthetic version of Ethereum, meaning it is a tokenized version of the underlying asset.
This means that cETH can be used to trade Ethereum without actually owning the underlying asset. cETH is created by an algorithmic process called "synthetic issuance" which allows users to mint new tokens based on the value of an underlying asset. This process creates a digital representation of the underlying asset, allowing users to trade it without actually owning it.
Unlike Ethereum, cETH does not require users to have any technical knowledge or understanding of blockchain technology in order to use it. This makes it much easier for users to access and use cETH than Ethereum. Additionally, cETH can be used as collateral for other financial instruments such as loans and derivatives, making it more attractive for investors and traders.
Finally, cETH also has lower transaction fees than Ethereum due to its algorithmic nature. This makes it more cost-effective for users who want to trade or invest in Ethereum without having to pay high transaction fees associated with traditional exchanges.
