Five Main Applications

Last Modified:8 Dec 2019 11:28:59
Five Main Applications

Five Main Applications of Cryptocurrencies

From the time Bitcoin has been emerged as a new innovation both in science and economy and getting involved in the world of business, various cryptocurrencies have been introduced to the market. The potential features which were once hidden gradually were expressed according to various fields they started to play a role in.

The primary purpose of cryptocurrencies which might have been just paying for goods and services now has changed dramatically, as you can see the trace of cryptocurrencies and Blockchain technology in many diverse fields such as healthcare, gaming industry, art, etc.

Despite some pessimistic looks at this industry like being the tool in the black market or appropriate for money laundering, it still enjoys some favorable features which made them a hub for some merchants and businessmen to handle their financial affairs.

The following list is five major applications of cryptocurrencies which are more prominent for both the users and the specialists.

1.     Digital cash: it has conventionally been considered as a peer-to-peer electronic cash system, the first five years Bitcoin came to being the only task which was defined for it was billing, so the above unique capability paved the way for it to be used in illegal activities. Furthermore, it was able to be used for buying everything. From the other hand, increasing the network fees in working with BTC caused creation of Bitcoin Cash which was featured by higher speed as well as lower fees. It is followed by the phenomenon called ICO as a tool to raise funds in this industry.

2.      Smart contracts: before the creation of Bitcoin there were smart contracts the idea of which was an innovation by Nick Szabo who is thought to be Satoshi Nakamoto. Almost all crypto networks have smart contracts to some extent.

3.     Lending: this service provided by cryptocurrencies is probably one of the most valuable ones by which the people can collateralize fiat loans against cryptocurrencies and vice versa. Maker, Compound and Instadapp are some well-known lending services on Ethereum network for example.

4.     Dominance: while it is not very much appealing for all, it can be highly useful for activities like voting. Dash is a budget voting mechanism after Blockchain got more complex.

5.     Collectibles: Non-fungible tokens (NFTs) represent unique digital assets. They can be traded or owned. Their value is determined by a central authority.

Taking extensive uses defined for the cryptocurrencies, and the wide variety of areas they are applied, we should expect their presence in the fields which are somehow unimaginable currently.