People often ask about Ethereum’s use cases. Before diving into cryptocurrency, everyone wants to know how they can use it. This post will answer all your questions about Ethereum.
Ethereum allows anyone to create decentralized applications using the blockchain platform. This is just one of the unique features of the blockchain. Ether is the currency that fuels the Ethereum platform. It also serves as the currency with which miners get rewarded for verifying transactions on Ethereum.
Developers turn to Ethereum blockchain for different applications and products because of its high security and transparency. Ethereum is still one of the most widely used cryptos, even when compared to other cryptocurrencies on the market.
It can be used in many real-world situations, unlike Bitcoin, which is limited to being a payment option or store of value. We will explore some real-world uses of Ethereum in this article so that you can see what you can do using Ethereum.
Real-World Applications for Ethereum
#1: Building Decentralized Financing (Defi).
This is the most promising Ethereum real-world application. It is well-known for creating various decentralized applications such as smart contract-powered loans, exchanges decentralized and minting stable coins.
MakerDAO is a popular Defi project that has been built on Ethereum. This project used the Ethereum smart contract functionality to create the DAI stable coin. Ether backs it.
#2: Implemented by banks for different purposes
Ethereum is now integrated into banking systems. This is due to its decentralized nature. Hackers are almost unable to access the network because of this. Because of its security, banks and other financial institutions use Ethereum-based payment systems to make payments and remittances.
#3: Ethereum can be used as a method of payment
Bitcoin can be used to make payments, but not just Bitcoin. Ethereum is making great strides in this area, too. It makes it possible to exchange any value with no risk using Ethereum’s smart contracts functionality. Ethereum allows for the recording of transactions in computer code, instead of making an agreement on paper between the parties.
In this scenario, you and the seller want to purchase something. To make it easier for both of you, smart contracts can be used to create an agreement contract.
#4: Suitable for the health sector
Ethereum is taking a major step to revolutionize healthcare. All hospitals worldwide will be able to access, store, and share their patient records with Ethereum. This could be very useful in situations when vaccines need to be developed for viral epidemics. It’s easy to share your medical records with your doctors even if you move between places.
Your doctor will find it easier to update your information when your wearable devices can track your health and share it with him on a daily basis. This will allow them to inform you before any serious medical condition like stroke or heart attack occurs.
#5 is used in voting systems
Although many countries claim to have a democratic system, it is common to see poll results altered. With Ethereum, however, it is impossible to alter poll results because no one or anybody has control over the network. Every change is recorded and visible to all.
This way, we can have transparent and fair democratic processes as Ethereum eliminates voting fraud.
#6 – Digital identity
The digital age has changed many things, including how we identify ourselves. No longer do we need to have passports made from paper to identify ourselves. However, governments are finding it increasingly difficult to verify the authenticity of online documents.
Ethereum makes it easier to verify data transparently and openly with Ethereum. Ethereum can be used for creating a digital identification system. This is a common goal of many companies. Civic is a popular choice.
#7 is used for data storage
There is no need to have a server farm with hundreds of servers in order to store large amounts of data. It can take up space and resources, and it could be a threat to nature and the ecosystem. Ethereum makes digital storage possible. The Ethereum blockchain technology is a faster way to encrypt data and transfer it between millions of servers. It’s a better option for data storage.
#8 is used to make better agreements
As we have already mentioned, smart contracts on the Ethereum blockchain are making waves. It allows agreements to be made between two parties and can be maintained without any modification. In an industry with fragmented participants, Ethereum is able to create digital contracts between participants. Transactions will be based upon this infallible contract.
#9 – Shipping
The shipping industry uses Ethereum to track cargo and prevent goods from being lost. Ethereum is a way to track any asset in any supply chain.
Ethereum is the second-largest cryptocurrency in terms of market capitalization. There are many uses for Ethereum, but we only have a few. If you’ve ever wondered what Ethereum can do, you now know the answer.