Ethereum is the most popular and widely-recognized altcoin in the cryptocurrency ecosystem. Since being introduced back in 2015, traders have flocked in growing numbers to include Ether in their portfolios. The blockchain technology it operates on has many potential uses for technology and has habitually been hailed as a game-changer for many industries. From supply chains to healthcare and banking, it seems like there’s no shortage of what the decentralized ledger can do. However, it looks like there’ll still be some time until all these use cases are implemented in real life.
In the meantime, people are becoming increasingly interested in cryptocurrencies and their applications. Ethereum is a popular choice among traders, owing to its relative stability compared to other coins. And while there are still some issues relating to scalability and potential security issues, given that crypto wallets are highly likely to be attacked by hackers, traders are still drawn to digital assets and tokens. The current crypto winter has indeed forced some traders to be more cautious with their choices, but they haven’t been wholly deterred from giving trading a shot.
With all this in mind, it’s clear that the enduring power of cryptocurrencies in general, and Ethereum in particular, is quite significant and won’t stop anytime soon. But what are some actual use cases for Ethereum? Is it a purely digital asset with no realized value in the real world, or can you use it to finance daily transactions? Let’s have a closer look at the facts.
DeFi
If cryptocurrencies are a new addition to the financial market, then decentralized finance is up to the minute. Working mainly on the same model as the blockchain itself, transactions made through smart contracts eliminate the need for a third party to oversee the proceedings. Everything happens using P2P communication, an application architecture in which every party has the same capabilities, and they can both initiate communication sessions at all times.
Many investors hail this development as very beneficial for the personal details of the individuals involved in a transaction. While in the case of traditional banking, there’s always a certain risk that your data could get potentially leaked, this probability is minimized in the case of blockchain-based transactions. There’s also the added benefit of complete stability since everyone with an internet connection can use decentralized finance. There are no geographic restrictions, and the process is much faster. If you want to send or receive money from across your country’s borders, you’ll probably have to wait quite a while in the case of traditional finances.
And, of course, there’s the added layer of security that comes with the fact that any action taken in the blockchain is forever. This is problematic if you don’t guard your passwords well and somebody else gains access to your crypto since everything you lose will likely remain lost forever. At the same time, it’s an absolute godsend in the case of financial undertakings. Your identification credentials stay secure and encrypted, and nothing can be altered in any way after it’s been completed. This eliminates the possibility of fraudulent activity.
Retail
Not long ago, paying with crypto for daily purchases would have been entirely unthinkable. Although this has always been meant as the chief use of cryptocurrencies, it wasn’t the case until recently, primarily because cyber money has a reputation for unpredictable and often extreme price fluctuations. This has been enough to make business owners reluctant, but things have recently begun to change.
Nowadays, a growing number of vendors have begun accepting payments in digital money. And while they’re still largely the domain of the online shopping sphere, several brick-and-mortar locations now allow it too, showing that the trend is undoubtedly towards a wider acceptance of crypto overall. However, if you’d still like to give crypto payments and your favorite store doesn’t yet accept them, don’t fret. There’s always the option of converting your cyber coins into fiat money and making payments that way.
Before commencing any transaction and beginning to place an order, it’s safe to check the current Ethereum price. While ETH is typically more stable than other altcoins and sees fewer price variations over the same amount of time, it’s also not entirely immune to fluctuations. It’s always best to err on the side of caution when it comes to cryptocurrencies since you don’t want to be left with the feeling you’ve wasted your money. Even when checking on a daily basis, you might still notice slight variations in the price of Ethereum, and although they can seem small, in the long run, they can make all the difference for your wallet.
Tokens
Tokens are the best proof that the digital and real worlds are beginning to merge. This process creates a blockchain-based representation of real-world assets. This makes an analogous asset that could stand for any holding in real estate, stocks or precious metals. Much like in the case of decentralized finances, the main advantage is the speed of transfers and transactions, which are much more efficient than in the case of contractual representation.
While still not used at a broad scale, this method is estimated to become a multi-trillion opportunity in the not-so-distant future. And naturally, the Ethereum blockchain will be at the forefront of this development, owing to their pioneering innovations in the field of decentralization which gave rise to decentralized apps and financial services.
Healthcare
While still in a theoretical phase, blockchain applications within the healthcare sector are expected to rear their head soon enough. Data breach concerns will be vastly reduced when this development occurs, if not completely removed. The increased connectivity means that every physician you visit can access all your records and create a more comprehensive medical history. This makes for better-informed decisions regarding medication choices or therapy.
There’s also the possibility for more accurate diagnosis through the usage of data-collecting wearables. Such devices could potentially detect minute changes in your physical well-being and play a vital role in preventing destructive health complications such as heart attacks.
Looking at it that way, it seems like there’s nothing blockchain and Ethereum cannot do. And while the world hasn’t yet harnessed their full possibilities to use them at their full potential, it won’t be long until decentralized ledgers are employed across more diverse areas.
