Started as the world’s first smart contract platform, Ethereum has quickly become one of the most functional cryptocurrencies today. While Bitcoin provides a decentralised and secure payment platform, it lacks smart contract functionality. With smart contracts and the ability to build, Ethereum looks to offer unlimited access to blockchain technology.
Ethereum is adding value to a wide range of industries as it builds a global network of interconnected marketplaces. Anyone who uses Ethereum has access to a secure, efficient, and decentralised platform with multiple solutions.
Here are some of the top ways on how to use Ethereum.
Investment/Store of Value
Ethereum has risen over 2000% since the beginning of 2021, and has attracted a lot of new investors from institutional to retail. With the launch of the London Hardfork (EIP 1559) potentially making Ethereum deflationary, it’s easy to see why investing in Ethereum has become one of its core use-cases.
Every major exchange will offer Ethereum, with Coinspot currently offering the lowest trading fee in Australia (a 0.1% fee), making it accessible and relatively easy for anyone to invest.
There is a lot of talk of “the flippening” in which Ethereum may one day replace Bitcoin as the top cryptocurrency by market capitalisation. Whether you believe Ethereum will flip Bitcoin or not, it is definitely an asset you want to hold in your crypto portfolio.
Decentralised applications (dApps)
Another key use of Ethereum is to create decentralised applications. Various top applications like Twitter and Uber are owned by single organisations. These organisations determine how they are used and how data is stored. They can also limit information and other interactions. This is what Dapps seeks to eliminate.
Ethereum provides a platform where anyone can develop an application without central oversight. The applications run on the blockchain network while allowing multiple participants to consume and feed information.
Ethereum supports Dapps’ creation through smart contracts. The developers use smart contracts to detail the application guidelines in the form of backend code.
Some of the top Dapps include Uniswap, Aave, and Sushi.
Decentralised Autonomous Organisation (DAO)
Ethereum seeks to revolutionise how people around the globe create and manage organisations. Given that the digital space brings together people who don’t trust each other, yet still need to work together, there is a need for a platform to ensure transparency. That is where the DAOs come in.
Ethereum smart contracts allow organisations to create DAOs and provide a way for both investors and participants to manage the future of the protocol. Ethereum itself has a DAO, that allows holders of the token voting rights to ensure that changes are not reserved to only a few individuals. These voting rights also extend to the treasury and how funds are spent.
Are you interested in other ways you can use Ethereum? You can use it to access financial services through decentralised finance (Defi) dApps. Defi allows you to access financial products on the blockchain without going through middlemen like banks and brokerages.
Unlike banks, Defi does not require personal details like a government-issued identification card or proof of address to operate. Ethereum provides a peer-to-peer platform where buyers, sellers, borrowers, and lenders can interact. Defi relies on smart contracts for agreement terms between the borrowers and lenders.
Non-fungible tokens (NFT)
Ethereum is also impacting the sales of digital assets. The Ethereum network allows various entities to turn their products into assets and sell them anywhere in the world. Whether it’s music, art, video, or any other creation, you can turn it into an NFT then sell it. The platform also allows the creator to inscribe a digital signature for transparency. Popular NFTs include Cryptopunks, NBA Top Shot, Zed Run and BAYC.
Digital and physical store payments
The other way to use Ethereum is as a payment method. Are you wondering how to pay using Ethereum? Well, it’s simple. Various merchants in Australia accept Ether as a payment option. You only transfer the tokens from your account to their wallet once you have received the products or services.