Tuesday, November 5, 2024

Ether, cryptocurrency and the core part of decentralized finance

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Ether, the original “token” of “blockchain” Ethereum has a dual character: it is a token for payment and utility. On the one hand, is Cryptocurrency with which to pay The computational services of this network and the fees for verifying the transactions that take place in it. On the other hand, it is also a file The “gasoline” that allows them to run the Decentralized Applications (or ÐApps), applications based on encryption with users Conducting direct transactions and agreements without intermediate entities, and “Smart Contracts”Smart contracts are automatically executed and ensure that these transactions and agreements are fast, secure and efficient.

“Applications and smart contracts” are the mainstay of calls decentralized finance, or DeFi, any development Financial products and services (such as credits, loans or insurance) offered to users through these Applications and formalized through Smart Contracts, Ability to work in an automated and decentralized manner. Decentralization means that there are no intermediary authorities controlling transactions; Thus, users can simultaneously be the parties to the agreement, its enforcers, notaries who certify its authenticity and the owners of their data.

Ethereum It has a lot of weight in the development of decentralized finance, because it is a blockchain Most used in the crypto world To develop ÐApps and smart contracts.

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Its cryptocurrency is also used to make payments, and is being replaced by other “tokens”, such as Ensuring the creation of “tokens” for other cryptocurrencies To build and own “stable coins”Cryptocurrencies that first appeared on Ethereum and concentrated For the most part on this platform.

For all these reasons, the ether Moves more than 500 billion dollars globally, which makes it The second cryptocurrency by market capitalizationJust behind the trillion-dollar bitcoin.

In the event of non-implementation interoperability Among the blockchains, which will lead to more DeFi resiliency, the attraction of these two cryptocurrencies arouses the interest of investors and financial institutions, but also makes them wait Specific regulations imminent. Vitality arrived Alfonso Gomez, CEO of BBVA Switzerland, which provides preservation and sale service for Bitcoin And Ether, the protocols of these cryptocurrencies, in addition to being the most interesting among investors, are also those that “offer all guarantees of compliance with regulations.”

BBVA offers these services from Switzerland because it is one of the countries with more advanced systems Around. Recently, launched a strict regulation of Prevent money laundering It can be executed with cryptocurrency.

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