Ethereum as a Financial System
There is a common widespread mistake people make when it comes to Ethereum definition. Ehthereum is not a cryptocurrency itself. Ethereum is a platform that enables the existence and circulation of a cryptocurrency named Ether. It also enables the storage of other cryptocurrencies that use the decentralized financial control system. For example, Bitcoin.
Ethereum’s popularity grows exponentially. It is widely used in trading and online shopping, ETH gambling, investing, financial management fields, and other areas and predictions say it will be continuously growing within the next several years.
What is DeFI?
In simple words, a decentralized financial control system is not controlled by any third parties and authorities. DeFi was started as an experimental form of finance that does not involve brokerages, banks, and other common institutions. Instead of those intermediaries, DeFi utilizes Smart Contracts within the blockchain. Ethereum is the most famous example of such technology.
What are Smart Contracts?
Being an example of a highly efficient, transparent, and safe financial system, DeFl has some weaknesses. One of them is a vulnerability to unreliable miners with speculative intentions. Smart Contracts are helping to prevent such cases.
In simple words, Smart Contract is a program code that is used for decentralized apps developing within the platform. In classical blockchain technology, there are special computers called “nodes” connected to a separate chain. They are used to solve puzzles and add transactions to the chain. In order to create a Smart Contract, a program developer is using a node to write it. Smart Contracts are stored in a blockchain as lines of codes – a software of a particular type that is automatically executed in case of need. For example, in case of agreeing on terms of a contract in business collaboration, the parties can confirm the deals with the help of Smart Contracts.
ETH Gambling Opportunities
To date, Ether is one of the safest and fastest cryptocurrency types in the world. It is very popular among gamblers and widely used in many online casinos and gambling platforms. Numerous benefits of Ethereum using in gambling make it a perfect competitor to Bitcoin, Litecoin, and other altcoins. Among its advantages are the following:
1. Casinos are willing to involve more players who use Ethereum. That is why they provide lower commissions and charges.
2. Ethereum casino transactions are safe and secured. Any personal data are involved in providing Ethereum transactions.
3. You can play casino games with Ethereum from any country avoiding restrictions and policies against gambling.
4. Inflation rate is much lower when playing Ethereum casinos.
Ethereum Blockchain vs Bitcoin Blockchain
If comparing Bitcoin blockchain and Ethereum blockchain technologies we will see many similarities between both of them. But there are such differences:
- Ethereum uses its own programming language called Solidity
- Ethereum allows storing Bitcoins and other altcoins within the platform.
In common, Ethereum’s blockchain technology is more complicated than Bitcoin’s blockchain. Ethereum is a separate software platform that represents a computers’ global network. Together this network operates as a solid supercomputer. It uses the mentioned above Smart Contracts technology. There is a popular mistake made between Ether and Ethereum definitions. But Ether is a cryptocurrency that is stored and circulates within Ethereum.