Ethereum is one of the most important digital coins in the crypto realm, as it is more than a cryptocurrency; it is also an open-source application that encourages numerous innovations. Ethereum was developed back in 2013 when Vitalik Buterin wanted to offer a solution to the shortcomings of Bitcoin and provide much more than the crypto king. And it managed to do that, as Ethereum now has a long list of innovations, including smart contracts, dApps, DeFi, and NFTs, that have a direct impact on the ETH price. Ethereum offers improved solutions over the traditional options, as it doesn’t experience issues like censorship, fraud, and third-party interference.
This has also helped Ethereum have numerous use cases, which have increased its popularity and made more individuals interested in investing in it. For example, Ethereum can now be used in many ways, including gaming, finance, identity, and supply chain management. The native token of Ethereum is Ether, which makes all the operations on the platform work. So, are you ready to discover more about Ethereum’s use cases? Keep reading to find out more.
DAO
One of Ethereum’s most notable use cases is the development of Decentralized Autonomous Organizations (DAOs), organizations that function on the blockchain without the need for central authorities. So, they follow the rules embedded into the software, and stakeholders make decisions regarding the platform by voting. One of the best parts of DAO is that it offers equal opportunities to all members, without considering how long a person has been within that specific company. DAO has remained popular on the platform, and it is one of the uses of Ethereum.
DeFi
Ethereum is also a blockchain that encourages decentralized finance, which refers to all the financial services and applications that function on blockchain technology. DeFi has a wide range of applications, including decentralized lending, decentralized exchanges (DEXs), borrowing platforms, and the creation of stablecoins.
DeFi is an innovation that has changed financial services and products by adding innovative solutions that improve all financial products.
NFTs
Ethereum is also the main platform for creating NFTs, unique tokens representing various things, such as collectibles, artwork, or even real estate. NFTs are one of the most popular innovations on Ethereum, as some pieces have even been sold for millions of dollars. Plus, NFTs are very diverse and unique, as there exists only a single piece of a kind, which helps them be even more special and makes people want to invest in them. NFTs became very popular in 2017 when CryptoKitties tokens were launched, and since then, they have increased in popularity, becoming assets that a lot of people have invested in. Even celebrities and big companies have entered the intriguing NFTs world and created their own non-fungible tokens.
A Payment Method
Ethereum is a blockchain with a native token, Ether, which can be used as a payment method that encourages users to pay quite a bit for everything. Plus, Ethereum has even more benefits than traditional methods. For example, Ethereum is a public blockchain that is also transparent, meaning that anyone can see the transactions that occurred on the network, and it is also immutable, which means that no one can duplicate or manipulate the information on the platform.
Ethereum is a better option than traditional alternatives, as transactions are much faster, and no parties are involved, which is especially beneficial for international payments.
ICOs
Ethereum can also be a good platform for Initial Coin Offerings (ICOs), which represent a fundraising method very similar to selling company shares. ICOs started to be popular some years ago, as many startups have used them to raise funding, which is also the case with Ethereum.
Decentralized Governance
Ethereum is a public blockchain that can be used for decentralized governance. Ethereum is the best platform for users to make decisions securely and transparently. Plus, Ethereum can also prove to be a good solution for creating a transparent voting system that will instill trust among populations and represent a unique tool to fight unstable democracies. This would happen because, with the help of blockchain, it is impossible to manipulate the results, as this platform is immutable, and once a vote is recorded on it, it can’t be changed.
Additionally, anyone can see what is present on the blockchain, meaning that the votes are visible to everyone, thus eliminating the chances of fraud.
It Can Be Used In The Health Sector
Ethereum can also be used in the health sector, as it represents a secure and public data network that allows doctors and hospitals to record a large variety of data.
As all the information would be stored in one place, this will improve the lives of patients, as it will represent a vital tool that doctors can use.
Supply Chain
Ethereum can also be used in the supply chain, as it functions on blockchain technology, which has the potential to improve transparency and reduce costs. Why does this happen? Because Ethereum is a network that can eliminate a lot of the complicated centralized logistical processes, and in this way, it will also reduce a lot of the final costs. Not to mention that Ethereum can also improve transparency and trust between organizations and customers, as clients can see each step through the journey of the products. This is even more important when products are traveling a long way, and blockchain can track all details, such as the stops or the temperature of the containers.
Conclusion
Ethereum is a very important digital currency and blockchain with numerous use cases, including creating decentralized applications, executing smart contracts, developing non-fungible tokens, and conducting initial coin offerings, and the list can continue. Plus, Ethereum is the second-largest digital currency by market cap and a direct competitor with Bitcoin, the largest cryptocurrency. In the future, Ethereum will surely become even more popular as it will go through a lot of updates that will improve the use cases and its limits.