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You may be wondering, “What are some uses of Ethereum in the real world”? In this article, we’ll be exploring some uses of Ethereum in everyday life and why many people trade with it.
Ethereum is a blockchain platform that allows anyone to run decentralized and open applications on it. “Ether” is the currency that pays miners to verify transactions on the blockchain. This platform is powered by Ethereum.
Ethereum’s transparency and immutability make it an ideal platform to host products and applications on an open network. These applications can be used for everything from finance to politics.
While Ethereum is often criticised for its limitations in scaling, it is still the most widely used platform for decentralized apps at the time this article was written. While Tron and EOS have taken a part of Ethereum’s market share but are not as scalable as Ethereum, they all work in real-world applications.
Uses of Ethereum in Everyday Life
Here are some important benefits of Ethereum in the real world:
Decentralized finance (DeFi)
Decentralized finance applications are one of the most promising uses for Ethereum. Also known as “DeFi”, it is often abbreviated. These include smart contract-powered loans and the minting of stablecoins. “MakerDAO” is one notable example of this category. It uses elaborate Ethereum smart contracts to create a stablecoin (DAI), which is backed with Ether and always worth $1.
Digital identity
In the last five decades, our identification has not changed much. It is still necessary to have a passport, which is still made from paper, with us everywhere. The main reason we haven’t yet migrated to a digital system is that it’s difficult for governments to verify the authenticity of online documents.
Ethereum allows data verification in an open and transparent manner. This means it could be used to help pioneer the creation of a digital identity system. Civic and other companies have already realized this potential and are working to make it a reality.
Tokenizing real-world assets
Many believe the security token market will be a multi-trillion-dollar opportunity. Ethereum could be one platform that allows this shift. Security tokens are a blockchain-based representation of real-world assets such as stocks, precious metals, and real estate. These assets can be tokenized on the blockchain so that issuers can transact and transfer them more easily than if they were only contractually represented on paper.
PolyMath is a blockchain startup that has made asset tokenization a powerful use case for Ethereum. It raised $59 million in an ICO and is now building one of the first compliant platforms to tokenize real-world assets on the Ethereum blockchain.
Health applications
The healthcare system will be revolutionized by Ethereum. All hospitals worldwide can access, store, and share the records of their patients. This information is crucial in the development of new vaccines against viral outbreaks or even to prevent them from happening. If you’re on vacation, you can visit a doctor in Thailand and a New York hospital for a checkup. Both will have the same information.
This is not all. Do you remember the wearables craze of a few years back? These devices will be around for the foreseeable future, whether you like them or not. Imagine that every day, the data you keep on your smartwatch is automatically shared with every hospital around the globe. You could be warned if patterns are found in medical conditions such as strokes or heart attacks. Ethereum can make all this possible and could save your life.
Security infrastructure
Hackers cannot attack a central server, so it is much harder to hack into websites and steal personal information.
Privacy from third parties
Did you know that the search engine most internet users use every day is Google? Yes, that search engine with the capital letter “G”. Surprisingly, the company also collects personal data and sells it to advertisers. The company makes billions of dollars every year. This data collection would be impossible with Ethereum’s blockchain technology.
It doesn’t make it impossible. If they don’t want to damage their brand image, corporations of large size will need to be more cautious with how they use our data.
And that’s a wrap! Ethereum is large but not yet as big as Bitcoin, though, you may want to identify the differences between Bitcoin and Ethereum.
