There are numerous use-cases on the Ethereum blockchain. Below are some of the most recognized use-cases as of today.
The Ethereum blockchain is best known for being the go-to blockchain for buying, selling, and creating NFTs. The most popular NFTs to date including CryptoPunks, Bored Ape Yacht Club, and VeeFriends have all been created on the Ethereum blockchain.
Wait a minute. Isn’t the Ethereum blockchain inefficient? Why not use a more efficient blockchain that costs less to transact and is better for the environment? It’s simple.
Ethereum is the leading NFT blockchain for a reason. When NFTs first became popular in early 2021, it was the result of CryptoPunks and the popular Nyan Cat Meme selling for large sums of money and making headline news. Since these NFTs both live on the Ethereum blockchain, the trend continued.
As more people began to create NFTs, they made sure to utilize the blockchain where all the attention had already been—the Ethereum blockchain. As a result, Ethereum became known as the go-to blockchain for those who wanted to sell their NFTs for a substantially higher price compared to other blockchains, which at that point, were far behind Ethereum in popularity.
In addition to Ethereum’s popularity, the security and its smart contract functionality are a big pro when it comes to NFTs. Many of us in the Web3 space are innovators, and Ethereum just so happens to be the platform where innovators can thrive and create whatever they want, while still ensuring security.
Decentralized Finance (DeFi)
Another application also founded using the Ethereum blockchain is decentralized finance (DeFi) platforms such as PancakeSwap. DeFi platforms enable people to lend and borrow funds from others, invest in assets, trade crypto, insure against risks, and earn interest in savings accounts.
The best part about DeFi platforms is that, unlike traditional centralized exchanges, DeFi exchanges use Ethereum’s smart contract functionalities to provide services that don’t need intermediaries. Saving the users' fees, and the exchanges time and money.
Decentralized Autonomous Organization (DAO)
Another function discovered by Ethereum developers is a decentralized autonomous organization (DAO). A DAO is a blockchain-based organization that operates without any central authorities.
Instead, they are governed by smart contracts and the administrative decisions are voted upon by community members who are also stakeholders in the organization. At the end of the day, DAOs are open-source and community-governed, just like the Ethereum blockchain.
Overall, the Ethereum blockchain is still considered a new technology. All of its use-cases are still being optimized, and other use-cases are yet to be discovered. With that, it’s safe to say the potential of Ethereum seems very promising. With more than $27 billion of NFT sales volume alone, Ethereum is set to remain the premium blockchain for years to come.
Ethereum is a decentralized, open-source platform best known for NFTs and its cryptocurrency, ETH. The blockchain technology that powers Ethereum enables secure digital ledgers to be publicly created, viewed, and maintained—creating the ultimate transparent platform for creators and consumers alike.