Use cases of Ethereum

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Last Updated on September 26, 2022 by Bitfinsider

What is ETH?

Ethereum is a “virtual machine” that can run decentralized applications (dApps), or programs that operate without the involvement of a third party, as well as smart contracts, which are scripts of code that execute automatically under certain conditions.

The cryptocurrency that powers the Ethereum network, Ether, has the second-highest market capitalization in the space.

While many people regard Bitcoin as a store of value, the majority regard Ethereum as a platform for the creation of new cryptocurrencies and decentralized applications.

Use cases of ETH

Smart contracts and decentralized applications (dApps). In a decentralized finance (DeFi) protocol, a smart contract could reward a musician when a music dApp plays their song or grant a loan to someone using crypto as collateral.

Anything can be tokenized. Users can create their own unique, non-fungible tokens (NFTs) that can represent anything from virtual assets to real-world commodities using Ethereum. These tokens can then be traded or used to power other decentralized applications.

Make your own currency. With a few lines of code, anyone can create their own cryptocurrency. USD Coin (USDC), for example, is based on Ethereum.

Fees for transactions. You pay transaction fees in ETH when you send an Ethereum-based token or use the network.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.