Wondering what are some real-world use cases of Ethereum. You are at the right place.
Ethereum, which is second-largest cryptocurrency behind bitcoin, is a blockchain platform that enables anyone to run decentralized and open applications on it. Ethereum is fueled by "Ether", the currency which is paid to miners for verifying transactions on the blockchain.
Although Ethereum is often criticized for its scalability limitations and gas fees, it is still the most popular platform for decentralized applications.
1. Defi (Decentralized finance)
DeFi, uses emerging technology to remove third parties in financial transactions. It eliminates the fees that banks and other financial companies charge for using their services. Anyone with an Internet connection can use it, without approval.
This is accomplished through peer-to-peer financial networks that use security protocols, connectivity, software.
2. Storing data
Today's big tech companies store huge amounts of data server farms.
A server farm is basically a building where hundreds of servers are used to store information. The problem with server farms is that big tech companies concentrate large segment of its storage capacity on a single location.
The solution is a storage facility that is decentralized and not controlled by a single largest centralized company. In that case, information is not stored in a couple of server farms in the US, but in hundreds (or even thousands) of data centers all around the world. Until now this has not been possible because it is a big technological challenge to build a network that connects all those servers safely and enables a fast data transfer.
However, Ethereum could solve this problem because its blockchain technology can be used to encrypt and quickly transfer data between millions of servers.
3. Tokenizing real-world assets
Many people believe that the security token market could be a multi-trillion opportunity, and Ethereum could prove to be one of the platforms enabling this shift. In essence, security tokens are a blockchain-based representation of real-world assets like stocks, precious metals, real estate, and more. By tokenizing these assets on a blockchain, issuers can transfer and transact in them much easier than if they only had a contractual representation on paper.
One of the projects turning asset tokenization into a powerful use case of Ethereum is the blockchain start-up PolyMath, which after raising $59 Million in an ICO is now building one of the first compliant platforms to tokenize real-world assets on the Ethereum blockchain.
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