Ether or also know as Ethereum is a form of digital currency used for operating smart contracts. Just like its predecessor Bitcoin, Ethereum and Ether tokens are not controlled or issued by any bank or governmen and are decentralized. Ether is the necessary element needed to operate the distributed application platform Ethereum. Ether can be looked at as a form of payment made by the clients to another party or entity. Ether is also a incentive to developers and miners.