If you are following Ethereum price development and events that could impact Ethereum future value, you probably heard about Dether. Dether has the potential to change the way Ether transactions are carried today by allowing interested parties to purchase Ether directly with cash.
Dether is the world’s first mobile and decentralized app enabling users to buy ether with cash and spend it at physical stores. Once the app is installed on your phone, you automatically become part of the international ecosystem of Ether users that includes buyers, sellers and physical stores accepting to trade Ether for fiat money or accept it as a means of payment. In fact, once you install the app, you act as a sort of mobile ATM and you can agree with other sellers or buyers on fees to buy or sell your Ether.
Basically, the application allows you to:
- Buy or Sell Ether to other users on the network for cash
- Use your Ether to buy goods directly at physical stores accepting Ether as a method of payment.
Why is this important for Ethereum’s value?
If Dether succeeds into making it easier for individuals to buy Ether it will be a huge Leap forward for the adoption of Ethereum by the masses. The fact that with Dether, all you need is a smartphone (you don’t even need a bank account) and you can buy and even sell Ether is going to allow more people to access this Cryptocurrency and increase it’s use worldwide.
Current state, to buy Ethereum you need to
- Have your own digital wallet
- Sign up and get identified with one or few exchanges (depending on your country and what Cryptocurrencies you want to buy).
- Once identified, transfer the funds into the exchange account
- Wait until the funds are available (average 3 to 5 business days depending on countries, currencies and exchanges). You can save some delays if you use your credit card but will incur significantly higher fees.
With Dether, it’s a matter of installing the app, locating a Buyer/Seller on the Dether map, agreeing on the fees with the buyer/seller of Ether you want to purchase or Sell.
How does Dether work?
Dether uses Ethereum blockchain’s distributed Applications (Dapps) and smart contracts.
- The agreement is reached through Dether’s distributed application anonymous peer-to-peer messaging
- The transactions are completed through peer-to-peer trading using D-wallets (Dether wallets).
- With the use of Ethereum’s Smart contract, users’ private keys are created, encrypted and stored locally on their phone. Dether itself doesn’t hold users’ funds.
- Smart contracts are also used to rate users be it the buyers or the sellers. Each user has a public rating based on the transactions they have closed as well as volume.
Depending on the adoption and success of this new app, many banked and unbanked users can now have access to Ethereum. All they need is a smartphone and they can localize Ethereum buyers and sellers on the Dether map or even stores that accept Ethereum as a method of payment.
This can definitely increase the adoption of Ethereum by multiple folds therefore increasing its value. Investors with interest in Ethereum and Cryptocurrencies in general need to keep an eye on the development of this new plateform and its usage as an indicator of future Ethereum use and price.