Ethereum enthusiasts believe that it’s better than Bitcoin and other blockchains because it powers several different use cases.
When Vitalik Buterin launched Ethereum in 2009, the entire sector evolution changed because blockchain was about to become one of the hottest subjects in the industry. Suppose you never heard of Ethereum. Let’s start by saying that it’s decentralized software developed with the help of blockchain technology, which introduced smart contract functionality for the first time. Similarly to all other projects based on blockchain technology, Ethereum is open source and powers cryptocurrency. Ether is the native token of the network and you can check an online exchange platform to find the current ethereum price usd.
Ethereum enables the development of applications and smart contracts based on blockchain technology, which prevents fraud, improves user control, makes them less prone to downtime and allows no third-party interference. Ethereum is a broad term used to refer to the blockchain but also programming language developers use to create apps.
Since its launch, the ecosystem has undergone several changes, one of the greatest being its split into two blockchains (Ethereum and Ethereum Classic) in 2016. By 2019, Ether had become the second largest cryptocurrency by market capitalization, and everyone interested in decentralized apps knew about its existence.
Image source https://unsplash.com/photos/black-and-white-star-logo-8iIUDnRq87o
What about Ethereum’s use cases?
Ethereum is a permissionless and public blockchain, so it encourages experimentation among developers, who don’t refrain from creating thousands of different decentralized applications that serve a variety of use cases. Here are the most important ones, suppose you want to exploit Ethereum beyond trading ETH.
Decentralized Autonomous Organizations
One of Ethereum’s most interesting use cases is the development of Decentralized Autonomous Organizations (DAOs), which function without the intervention of a central authority. Smart contracts encode the regulations and rules of how a DAO functions, and the community can vote on all operations regarding it.
DAOs are essential in the digital age because they allow users to control organizations without having to establish a hierarchy and promote an unparalleled level of transparency over rules and structures. All members of a Decentralized Autonomous Organization have equal rights, regardless of their moment of joining the organization.
DAOs are digital entities that require the permission of the entire community to make decisions. All changes must be implemented before the members vote for it.
Non-Fungible Tokens
Non-Fungible Tokens have gained tremendous popularity among blockchain enthusiasts over the last few years because they allow them to gain ownership of unique items and are interchangeable for any asset. They have been created to add value to music, art, games, and other similar commodities. They are best known for providing ownership for virtual real estate and collectibles. Non-Fungible Tokens are secured on Ethereum and other blockchains and can have a single owner at a time. Because they are developed with the help of blockchain technology, they cannot be altered or copied and have unique features. Ethereum-based NFTs are compatible with all the other digital items developed on the Ethereum platform and can be traded worldwide.
Decentralized Finance
We cannot talk about Ethereum’s use cases without mentioning decentralized finance because it encompasses some of the more interesting functionalities of the software. The term Decentralized Finance is used to define the financial products and services accessible to those using Ethereum. De-Fi opens new markets for crypto users, where they can access payments and services without being subjected to denied access from any authority. Considering the system is fully automated and based on a code, it’s not prone to human errors, as traditional services are.
Here are the most common problems traditional finance is dealing with:
– It can deny individuals from using particular financial services
– It can prevent individuals from getting paid in certain situations
– It sets specific trading hours according to time zones
– Governments and centralized institutions can influence markets and even shut them down.
De-Fi users hold total control over their finances and can transfer funds almost instantly. The market is open 24/7, so participants will have no issue sending money across borders, using stablecoins, trading tokens, borrowing funds, purchasing insurance, or accessing other services.
Payment solutions
Ether – the native token of Ethereum can be used as a form of digital payment. Ethereum is one of the most advantageous payment solutions in the sector due to its blockchain and smart contract features. More and more online users are searching for payment solutions that don’t imply the involvement of a third party or banking institutions. Through its smart contracts, Ethereum manages funds transactions and encodes data at each step of the process. Blockchain is transparent and public and permits everyone on the network to review the transaction details. All data is immutable in the ecosystem, so no one can interfere with it, duplicate it, or manipulate it.
With traditional systems in place, sending large amounts of money across borders is costly and slow, but Ethereum makes the remittance process quite simple because it transfers the funds immediately. Users can exchange funds without the involvement of an intermediary.
Applications in the health industry
Ethereum, similarly to all other ecosystems based on blockchain technology can revolutionize sectors like the health and medical one because it enables the creation of a secure and public data network. It makes it easier for health institutions and specialists to access records and patient data stored on the chain, regardless of their location.
Blockchain technology facilitates the sharing and recording of data, and medical experts can connect their portable and wearable devices to the network to access information at any time.
Data storage
Businesses need to store huge amounts of data, and they often rely on server farms for this. Server farms are large buildings where hundreds or more servers are installed with the sole purpose of storing data for companies. However, storing all data in a single place can be quite risky because physical places are prone to deterioration.
A decentralized storage space like Ethereum’s is safer and allows more flexibility because its owners can access it regardless of their location.
Closing thoughts
Ethereum is a growing platform, and it is home to the second-largest cryptocurrency in the world. Suppose it maintains its journey on the same path, and it could grow larger than Bitcoin.
