Five uses of Ethereum in 2022
What is Ethereum or Ether used for?
Most developers would tell you the benefit of Ethereum is obvious. The blockchain platform allows anyone with the technical know-how to build decentralized applications, also called DAPs.
The blockchain was amongst the first to do this. The space was secure and transparent, motivating many developers to create on the blockchain.
However, this article isn’t going to cover the history of Ethereum. If you want to read about the history of Ethereum and why it exists, check out this article.
Ethereum and Ether have several uses other than a means of exchange. This article will explore five real-world uses of Ether and the Ethereum blockchain in 2022.
Decentralized finance (Defi): Decentralized finance, or DeFi, is a term used to refer to decentralized financial services. DeFi aims to provide decentralized financial services to the masses.
DeFi is one of the more promising aspects of the Ethereum network. Defi aims to give users complete control over their money and eliminate the rooms for errors or delays that traditional financial services seem to harbor. You won’t have to jump through hoops just to be denied the aid of financial services.
Means of Payment: This isn’t 2009, there is a lot more that you can do now with your Ether than ever before. On ValorExchange, you can make payments, transfer money to your loved ones, receive payments for services in crypto, etc.
Oh! Have we mentioned our community? Sorry, we have a community where we share daily tips, resources, news, guides, etc., to help people get more value from their cryptocurrencies.
Token launches or ICO: This is usually done to raise funds with the blockchain network. It is a fast-growing sector in the Ethereum blockchain. ICO means initial coin offering. It is another innovative way that businesses across the globe use cryptocurrencies to raise capital.
Businesses create unique tokens that investors can buy to gain access to certain features of a project the company is trying to launch or the company itself. It all depends on the company issuing or creating the tokens.
If the project is captivating enough, the company could raise millions by selling its tokens.
Decentralized Autonomous Organizations (DAOs): These are decentralized organizations governed or controlled by its members. They make decisions, vote, plan and execute those plans without the guidance or direction of a CEO. It may be difficult to imagine because the world is filled with organizations with a clearly defined head or CEO, but many DAOs are prospering.
The process is very democratic, as everyone votes on decisions, so no one person is in charge of everything all the time. Everyone strives to ensure that the organization runs smoothly.
Smart contracts: These are programs stored on the Ethereum blockchain. It operates when predetermined conditions are met. For example, I could program a smart contract to send N50 to a person’s account after they deliver a custom NFT to me.
The smart contract would do so without any third party inclusion because that is how it is designed. There are many applications for smart contracts in Agriculture, Law, Commerce, and many more to come.