We have seen a few different useless currencies being created on top of the Ethereum blockchain these past few months. A lot of people might be inclined to think Etherecash falls into this category, although it is evident the team has an entirely different vision. Now is a good time to explore what this project is about, even though it will not necessarily be appealing to everyone right away.
The Story and Goal of Etherecash
First of all, people need to realize Etherecash is another token created on top of the Ethereum blockchain. This is not surprising by any means, although it is not a pump and dump token like so many others we have seen over the past few weeks and months. Although it remains to be seen whether or not this particular token serves any actual purpose in the long run, the technology powering it offers some interesting opportunities.
On paper, Etherecash is designed to bridge the gap between those with access to finance and those without. We have heard this story quite a few times in the past already. Indeed, a lot of companies aim to bank the unbanked or even unbank the banked. This is a popular go-to phrase for projects which are still trying to find their place in the market. For Etherecash as well, it is just an empty statement until the team can actually deliver the goods.
To that end, Etherecash has quite an ambitious roadmap ahead. More specifically, the project aims to provide crypto-backed peer-to-peer lending, worldwide transfers, and a cryptocurrency debit card. The first two areas involve markets that are very competitive already, which means it will be hard to gain much traction. Cryptocurrency debit cards, on the other hand, are not easy to provide, given Visa’s and Mastercard’s recent decisions to cut off consumers outside of the EEA.
As one would expect from a new token created on top of the Ethereum blockchain, there will be smart contract technology deployed to power most of Etherecash’s services and features. Thanks to smart contracts, users should be able to lend on an international basis and get higher returns in the process. They will also allow anyone to send money anywhere in the world with minimal fees and instant confirmations.
Whether or not we need another ICO related to such purposes is anybody’s guess right now. No one can deny the ICO industry has been oversaturated for quite some time now. It is unclear how these tokens will be used specifically, as one could easily achieve all of the promised features through the use of normal smart contracts and Ether directly. Initial alpha testing of this lending platform will not take place until late 2018, which means people will have to invest in “good faith” first and foremost.
There is a real chance Etherecash will succeed in its inspiring mission. At the same time, it is not the only project to have tried to tackle this market in any significant manner. Moreover, the concept of ICOs is still a very risky business, which will not necessarily change anytime soon either. It is good to see a growing focus on disrupting finance as we know it, but one has to acknowledge Etherecash has perhaps bitten off more than it can chew right now. Only time will tell how this venture plays out.