The local currency of the Ethereum system is known as Ether.
Similar to money and Bitcoin, it can be used for daily transactions. Based on the present market value, Ether can be sent to someone else for the purchase of goods and services. The transfer is recorded on the Ethereum blockchain, which also ensures the conclusiveness of the transaction.
In addition, Ether can be used to pay the fee that permits decentralized applications (Dapps) and smart contracts to operate on the Ethereum system. You can compare smart contracts execution on Ethereum to driving a car. Driving a car requires fuel. Similarly, executing a smart contract on the Ethereum system requires the payment of a fee (referred to as Gas) using Ether.
Ether is gradually becoming its own distinctive reserve currency and value store. Within the DeFi environment at present, Ether is the ideal choice of asset that is used as the underlying collateral for many DeFi Dapps. It brings transparency and safety to the financial system.