It is not uncommon to see people ask about the use case of Ethereum. Everyone wants to know what they can do with the crypto before delving into it. If that is also one of the questions in your mind about Ethereum, you are welcome to read this post for the answer you seek.
Ethereum is a blockchain platform that allows anyone and everyone to build decentralized applications on it. And that is one unique feature of the blockchain. The Ethereum platform is fueled by Ether, which also serves as the currency with which miners are rewarded for verifying transactions on the Ethereum blockchain.
The high security and transparency present on the Ethereum blockchain is one of the reasons developers turn to it for developing different products and applications. Compared with other cryptocurrencies in the market, Ethereum still remains one of the cryptos with the most use cases.
It has several real-world applications unlike other coins like Bitcoin which is only suitable as a payment option and store of value. In this post, we will be exploring some of the real-world use cases of Ethereum so you can know what you can do with Ethereum.
Real-World Applications of Ethereum
#1: Building Decentralized Finance (DeFi)
This is definitely the most promising real-world application of Ethereum. It is well-known for building various decentralized applications, including smart contract-powered loans, decentralized exchanges, and minting stablecoins.
Popular among the several DeFi projects that have been created on the Ethereum blockchain is MakerDAO. The project leveraged the smart contract functionality of Ethereum to create the DAI stablecoin, which is backed by Ether.
#2: Implemented by the banking system for various purposes
Yes, Ethereum has now found its way into the banking systems, particularly because of its decentralized nature. That makes it nearly impossible for hackers to gain access to the network. So banks and various financial institutions are using Ethereum-based payment systems as a channel to make payments and remittances because of its security.
#3: Ethereum is used a means of payment
Yes, not only Bitcoin is suitable for making payments. Ethereum is also making ground-breaking achievements in that area too. With Ethereum’s smart contract functionality, it makes it possible to exchange anything of value without any forms of risk. Instead of making an agreement between the two parties involved on paper, Ethereum makes it possible to record the transaction in computer code.
So, in a scenario when you want to buy something, you and the seller can simply initiate an agreement contract in smart contracts for a better experience for both parties.
#4: Applicable in the health sector
Ethereum is making a move to completely revolutionize the healthcare system. With Ethereum, it will be possible for all hospitals around the world to store, access, and share the record of their patients. That could come in handy in times when vaccines are to be created for viral outbreaks. With easy record sharing – even among wearable devices, it will be possible to have your medical record with all your doctors, even when you switch between locations.
When your wearable devices could track and share your health progress with your doctor on a daily basis, it will be easier for your doctor to have updated information about your health. That way, they can inform you forehand about any medical conditions like a heart attack or stroke even before it happens.
#5: Used in voting systems
Even though many countries claim to be running a democratic system of government, it is not uncommon to see the results of polls altered. But with Ethereum, it will be impossible to alter the poll results since no single person or body has control over the network, and every change is logged and visible to everyone.
That way, we can have a transparent and fair democratic process as Ethereum eliminates voting malpractices.
#6: Digital identity
We are in the digital world and change has happened to many things, including the way we identify ourselves. We no longer need to carry passports made of paper as a means of identity – even that is making it difficult for governments to check how authentic an online document is.
But with Ethereum, it is easier to verify data in an open and transparent way. And so, Ethereum can be used to create a digital identification system. Many companies are already working on how to make this a reality. Popular among them is Civic.
#7: Used for storing data
We no longer need a server farm housing hundreds of servers to store huge amounts of data. It can eat up a lot of space and resources and could pose a threat to the natural ecosystem. But Ethereum is making digital storage possible. Since the Ethereum blockchain technology can be used to quickly encrypt and transfer data between millions of servers, it’s coming as a better alternative for data storage.
#8: Used for making better agreements
Like we earlier pointed out, the smart contract functionality of the Ethereum blockchain is making a lot of waves presently. With it, agreements can be made and maintained between two parties without any alteration. So, in an industry where there is always a dispute because of fragmented participants, Ethereum can be used to make digital contracts between the participants, and transactions will be based on this infallible contract.
#9: Shipping
Ethereum is now being used in the shipping industry to track cargo and prevent misplacement of goods. Ethereum provides a means of effectively tracking any asset in any type of supply chain.
Final Note
There is a reason Ethereum is currently the second-largest cryptocurrency by market capitalization. It offers a wide range of use cases, and we have only highlighted a few of them in this post. So, if you have earlier been wondering what Ethereum can be used for, we are sure you now have the answers.