Ethereum Express is launching two pilot projects, one related to gambling and another to cryptocurrency mining that will impact 48,000 users and showcase the improving speed developers of the Ethereum Express system are carrying through to 2020 and beyond. This new and exciting development not only has the potential to improve the user experience in two of the blockchain industry’s most popular use cases, it will have a profound impact on the industry as a whole.
What is Ethereum Express?
Like the name says, Ethereum Express is meant to do exactly what the Ethereum project does. It’s processing transactions faster than the Ethereum network and allowing developers to do what they do best, launch the next wave of the blockchain industry’s most exciting decentralized applications. As with most initiatives in the world of decentralized technology, Ethereum Express is totally community driven.
The true benefit of the whole project is the transaction speed the Ethereum Express network can offer is approximately 10 times faster than the original Ethereum blockchain and a mind-blowing 20 times faster than the Bitcoin network.
Just to put the above multiples in perspective, consider that at the present moment, the Bitcoin network only handles seven transactions per second, while the Ethereum blockchain can handle just 15 transactions per second. While Ethereum Vitalik Buterin hopes to scale Ethereum to 100,000 transactions per second in the future, that development is still quite far away.
Core Principles of Ethereum Express
The EEX coin and its development is defined by token holders, which allows each user the power to influence the future of the network. Everybody plays a role in the decision making process. Everybody has authority. Contrast that with Bitcoin and Ethereum, which inherently allow the most powerful miners and wealthiest validators most of the power. The EEX coin is fully transparent and allows for transactions to be settled with smart contracts.
At its core, the project promotes community involvement, fairly distributed authority, security and speed.
Why Mining Express is the First Use Case
Mining Express is the fifth-largest mining company in the world. Since it’s so large, the company is expanding its network of partners immensely and also making big money. Working with EEX is essentially an opportunity for Mining Express to test out the validity of the network and ultimately drive profits higher. The move makes sense for both projects as mining is the most popular use case in the industry and improving the efficiency of the process can drive the blockchain industry as a whole forward.
How Ethereum Express Will Impact Gambling
If making cryptocurrency mining more efficient is the most motivating factor behind increasing network transaction speeds, gambling has to be a close second. Consider that in 2013, more than 50 percent of all Bitcoin transactions were gambling related. Keeping in mind that the Bitcoin network launched in 2008, for more than half of all transactions to be gambling related is an absolutely whopping number.
How much are Bitcoin related gambling transactions actually worth then?
At the height of Bitcoin’s price boom in 2017, its estimated that more than 3.7 million bitcoins were used to wager on gambling sites worth approximately $4.5 billion dollars. Around the same time, Ethereum tokens fluctuated in value between $800 and $1,500 USD, but much of that had to do with token sales and cryptocurrency project fundraisers known as initial coin offerings.
Still, the popularity of both initial coin offers and gambling will remain steady in the world of cryptocurrencies in 2020 and beyond, and the fact that the Ethereum Express network is 20 times faster than Bitcoin only means that gamblers looking for action in a fast, efficient and secure manner may just help prop up the value of the EEX coin and its ecosystem in just the same way they’ve done for Bitcoin and Etherum.
Betting Big on Transparency and EEX
The overall cost of the pilot projects for its involvement in Mining Express and testing gambling related use cases on the EEX network will run around $500 million and will involve users from the United States, Japan, Brazil and several other countries.
If EEX proves successful, the project could very well be at the forefront of transparency in the cryptocurrency gambling industry.