Ethereum is the world’s second-largest cryptocurrency with a market capitalization of almost $360 billion, second only to Bitcoin. The Ethereum ecosystem has steadily gained momentum and community support mainly due to its solid read world use cases.
If you want to invest in this cryptocurrency or are just curious, here is everything that you need to know about Ethereum:
What is Ethereum?
Ethereum is a decentralised blockchain open-source platform that allows developers to deploy decentralised applications. This means that these applications are not run by any centralised authority.
This platform has a native cryptocurrency known as Ether (ETH), which powers this entire network. Ether is used to pay transactional fees and computational resources.
What are some of the most important real-world use cases of Ethereum?
Now that we know the basics of Ethereum, it’s essential to know the exciting world of possibilities that this blockchain opens.
Here is a roundup of the real-world use cases of Ethereum:
Decentralised finance (DeFi) is one of the most promising use cases of Ethereum. This term refers to financial goods and services that can be accessed by anyone who can use Ethereum. You cannot be denied access to this finance by any authority and can access it any time of the day.
These financial transactions are free of human error as they are governed by code and completely automated. Another advantage is that the users have absolute control over their monies and the transfer of funds takes all but a few seconds. With DeFi, people can send money anywhere in the world, borrow without collateral, and much more.
Buying goods and services
With close to almost 130 million Ethereum addresses today, Ethereum is being used widely as a mode of payment. It is increasingly being institutionalised by businesses and close to 2,500 of them accept this currency as a mode of payment.
These include payments for electronics, clothing, food, and other online services such as advertisements, VPN, hosting, and more. The reason for this is that not only does Ethereum enable faster transactions, but also ensures anonymity.
Store of Value
This is one of those use cases of Ethereum that it was not initially designed for. Still a lot of people invest in it to build on their capital. While this may sound surprising, Ethereum does make for a strong store of value with some solid reasoning behind it.
One of the most important reasons is that its price trends have almost always been upward, sometime as much as more than 9000% since its launch. Other use cases such as decentralised finance and adoption by almost all the countries and major companies around the world also add to its importance as a store of value. If you wish to include Ethereum in your portfolio, know the ETH to INR rates.
Can be exchanged for other digital assets
One of the most important use cases of Ethereum is that it can be used for purchasing other altcoins. Every month more and more new coins and tokens are launched and basis their popularity, they start getting traded on all the major crypto exchange platforms. This leads to an increase in their prices. Ethereum users can use their currency to purchase these coins and tokens before they see an increase in their prices.
One of the most prominent crypto assets is Tether (USDT), which is a USD backed stable coin. Before investing in Tether, get to know the Tether to INR rates.
The bottom line
While these are some of the major real-world use cases of Ethereum, there are many others reasons why Ethereum is one of the strongest currencies to invest in. The Ethereum platform continues to develop and innovate and is slated to become a part of the daily lives of millions of people around the world. To keep yourself updated on everything about Ethereum, you can refer to Coinswitch.