Crypto use cases
Even after 13 years of development of blockchain technology and the invention of smart contracts people still struggle to find how to use cryptocurrency. Nearing the end of 2022 this should be long debunked. So, let’s discuss how you can use crypto in your daily life and what other solutions it can offer.
The basic transfers
That is the primary way to use crypto with coins like BTC or LTC for cheap money transfers. They offer the ability to send money worldwide in a decentralized way. Meaning that there is no 3d party involved and no borders blocking it. Within the Simple app sending cryptocurrency can be done easily by phone number and without any commissions at all.
Get a loan fast with a low interest rate and without any credit checks. It does require sufficient collateral to apply for one. Here is how that is possible: if you have some ETH that you don’t want to sell but need cash you can use that ETH as collateral to receive stablecoins or cash. The rates are better because there are no intermediaries, approval is online and near-instant, repayment is more flexible. Maker and Aave are most popular for this type of use, are well established and secure. An important rule! Do not use loans to buy more crypto, it is exponentially increasing your risks. Never invest more than you can afford to lose.
They aren’t just monkey .jpgs! NFTs do have a potential to have a positive impact on things like ticketing, validation transcripts, ID systems, music royalties tracking and gaming collectibles. Concerts or events can sell NFTs that can’t be stolen or transferred, completely denying the possibility of scalping tickets. All diplomas, certificates, qualification can be held in digital storage, authentic, unforgeable, easily validated. Collectible and unique gaming items or achievements to display or resell can be rewarded for participation or extraordinary feats. NFTs have a lot of development ahead and need improvements, but the tech is fairly new and, undeniably, has great potential.
Distributed computing and storage
An already well-established concept that can benefit if moved to blockchain. Think of Amazon Web Services, it provides cloud storage, processing capacity and software tools. This was the idea behind Ethereum, to make it the “World’s Computer” a decentralized distributed global network with no single point of failure. Now many tokens are built on the ETH chain that make computing and storage based on crypto a reality. Such infrastructure allows people to get paid for lending the excess processing power of their devices to the network and get paid for it. While those on the other side pay to access it and use it for various purposes like testing demanding code, rendering imagery, running servers, and doing energy-intensive scientific calculations. It really isn’t hard to imagine an open-source, blockchain-based tool becoming an upgraded Google Drive. This area, arguably, has the highest potential for crypto development.
A system for interbank payments like SWIFT is just asking to be upgraded. It is expensive, slow, and has limited transaction throughput. There are already existing solutions that would improve business-to-business transactions. One of the most common is Ripple, it offers enhanced cross-border payments, crypto liquidity platform, Central Bank Digital Currency that meets the security and reliability standards. This decreases pre-funding requirements, strengthens cash flow, offers faster remittance at lower cost.
And of course, Money
Crypto has become very successful at being money. More and more service providers and merchants accept crypto as payments for what they offer. You might not be able to buy a car with Doge yet, let’s not get carried away here. But there are many restaurants that would accept cryptocurrencies as a payment method, so will stores like Home Depot or technology companies as Microsoft. Even further, pay with the Simple debit card anywhere and your crypto will instantly be converted to any fiat currency.
The applications go far and beyond, there are definitely hundreds more real-world use cases that will be developed in the near future. What is certain is that blockchain and cryptocurrencies will improve or introduce new and better ways to run businesses, governments, financial institutions and our daily lives.