Ethereum is “a decentralized platform that runs smart contracts”. Ethereum was co-founded by Vitalik Buterin, Mihai Alsie, Di lorio and Charles Hoskinson in 2014 when it was announced for the first time at a Bitcointalk forum.
For Vitalik Buterin, setting out to create the Ethereum was as a result of shortcomings he experienced in using the Bitcoin blockchain. His belief is that blockchain has much more potential than simply being used for digital currencies. Based on this he set out to build something he felt was an upgrade to the Bitcoin blockchain.
Ethereum is different from the widely known Bitcoin in a number of ways. For a start, the Ethereum blockchain has its own currency known as “Ether” or ETH. Seeing as Ethereum is different from Bitcoin, it has its own specific uses. While it shares some of these uses with Bitcoin as well, it has a couple of distinct use cases.
In this post, we’ll take a look at the uses of the second largest cryptocurrency by market cap as at the time of publishing.
4 Use Cases for Ethereum
To Carry out Transactions
This is pretty much a similar utility value that Ethereum shares with its predecessor, Bitcoin. With Ethereum, you can pay for stuff. Like Bitcoin, there are merchants that accept the Ethereum currency for transactions. In a recent post published by Coin Sutra, they collated a list of merchants that accept Ethereum for transactions. Some of these merchants are Overstock, Snel, Peddler, 1000 EcoFarms and Laptop Power Bank.
You can build and run an app on the ethereum technology. Ethereum is a decentralized platform that runs smart contracts. This means that applications built on ethereum run just the way it is programmed to. There is also no probability that it would have a downtime, censorship, fraud or third-party interference.
Some popular Ethereum apps are Compound Finance, Marble, ixLedger, Veil, Open Sea, Origin, and a host of others
If you are interested in this, you can find out more about it on the Ethereum Blockchain App Platform.
Create Digital Currencies
Ethereum is a distributed public blockchain network like Bitcoin. The Ethereum blockchain can be used to build other things including digital currencies.
Some digital currencies built on the Ethereum blockchain include USD Coin (USDC), Maker (MKR), True USD (TUSD) and Holo. Building a digital currency on the ETH blockchain can help reduce time to launch your own digital currency since it eliminates having to build your own blockchain before kicking off.
Become a Video Game Lord
If you are a video game fan, then you are in luck with this one! You can make digital items for video games with Ethereum. These items are also tradeable beyond the bounds of the game.
The advantage that blockchain based games above games are that the assets in your game are owned by you, you can make some money by playing these games and the items, assets and characters that you own in these games are restricted to one game.
Popular Ethereum based games are World of Ether, MegaCryptoPolis, Lordless, Chibi Fighters, ETH.Town.