Ethereum blockchain was founded by Vitalik Buterin back in 2014
Ethereum blockchain was founded by Vitalik Buterin back in 2014 and the network’s main net went live in July 2015. Ether is the token used on the Ethereum platform and at the launch 72 million pre-mined and 70% of the supply is in circulation as of 2018.
Ether token just like many other cryptocurrencies have sub-divisions or small units for the ease of transactions. Some of the subdivisions of Ethereum tokens are,
- the wei,
- the Szabo,
- the Finney,
- the ether.
Coming to the question, Finney is a smaller unit of Ether and its one-thousandth of the Ether in value, i,e one thousand Finney would make one Ether token. The subdivisions are meant to improve the ease of transaction.
This article would help you understand what Finney is and how sub-divisions of the cryptocurrency play a very important role in making the transactions more feasible.
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Ethereum and its Tokens
Ethereum is an open-source distributed network and a public blockchain which focused on creating a blockchain ecosystem rather than creating just another token for the trade market. Ethereum platform comprises of various services and facilities like tokenization, the formation of smart contracts, the creation of DApps and Ethereum Virtual Machine.
Since its inception in 2015, Ethereum has been able to prove its mettle both in terms of trade market valuation and a platform which helps other new startups to achieve their crypto dream.
Ether the token which acts as a fuel and a mode of exchange on the platform has been among the top 3 cryptocurrencies for quite some time now. Just like the fiats, even cryptocurrencies have subdivisions with a lower value for the ease of transactions. Let us consider an example to understand the concept of subdivisions in currency.
If you go to the supermarket and the packet of cookies cost $5.50, you pay the cashier 5 dollars and 50 cents. Here Cents account for the subdivision of the dollar. Similarly, if you are making purchases from an online store which also accepts Ether, and the product costs around $145, then you can pay one Ether token which is currently valued at $142.67 and the rest $2.33 will be paid in Finney as the sub-division is 1/1000th of Ether in value.
As we mentioned here, Ether has 3 sub-divisions and each one has a fraction of the value Ether. In the next section, we would look at the values of all the subdivision tokens of the Ethereum platform.
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Finney: The Subdivision of Ether
Bitcoin has a subdivision known as Satoshi, similarly, Ether has 3 subdivisions which we discussed in the first section. Out of the three, Wei is the basic unit of Ether and its value is 10^-18 of the Ether.
The second basic unit Szabo is trillion times larger than wei while the Finney is 1000 times larger than Szabo and a thousand times smaller than Ether.
If you think the names sound familiar, well all the subdivisions of ether have been named after some of the noted people who have contributed towards the cryptocurrency space. All these noted personalities work can be either found on their respective websites or you can Google them for convenience.
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Final Thoughts
Satoshi’s Bitcoin vision was to create a peer-to-peer cashless transaction network which would be decentralized and free from the clutches of centralized institutions. However, the white paper was not just for some internet fame but a well-thought-out ecosystem. He made the Bitcoin network open-source so that others can follow the suit. The pioneer cryptocurrency Bitcoin also has sub-division so that people don’t find it complex to use it in daily life.
Similarly Ether token also has various subdivisions for the same purpose, since the main token is traded market-based and its value changes almost every day. If there would not be any subdivision people might not be able to use the main token as a daily form of exchange and it would only act as a store of value.
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