You might have heard the statement that “when the knowledge of a thing is not known, abuse is inevitable”. For cryptocurrencies, this may not be so far from the truth. Yes, crypto is a form of currency that is digital and decentralized and is used mainly to buy and sell assets. However, cryptocurrencies can be used beyond transactions and as a means to store and grow financial assets.
With the ever-increasing adoption of cryptocurrencies, we now have crypto advance use cases. This means the application of crypto beyond financial transactions.
Use cases for crypto in 2024
A use case is typically used to describe the problem that a software system will solve. In this case, we will outline and discuss how crypto can help users accomplish goals that transcend monetary exchange. The following are 5 of the most advanced use cases in crypto.
Smart contracts:
Smart contracts are codes that automatically executive operations when certain circumstances are met. It eliminates the need for intermediaries and has found its use in systems like Decentralized Autonomous Organizations. Ethereum (ETH) is the cryptocurrency that powers smart contracts. The highly decentralized and secure system of Ethereum allows smart contracts to operate without fraud or external control.
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Increased privacy:
The ability to make transactions anonymously is another crypto use case. For example, Monero (XMR) features a non-transparent blockchain and is a useful cryptocurrency for individuals or organizations looking to maintain anonymity. The crypto token brags about a privacy-enhancing technology that it uses to guarantee anonymity.
Enhancing Non-fungible tokens:
NFTs have been a big rave since last year. From games to art, NFTs have enabled creatives to benefit more from their work. NFTs are used to represent real ownership of digital assets. They can also extend to real-world assets such as artworks. We have platforms that now offer services focused on NFTs. These platforms create tokens or cryptocurrencies that are used to reward users. Examples of NFT marketplaces are OpenSea, Binance, and Axie marketplace. Owners can sometimes exchange cryptocurrencies created by the NFT platforms for real value both within and outside the platform.
Governance:
Decentralization is the major highlight of cryptocurrencies. The ability to self-govern among crypto users is one of crypto’s most attractive features. With the use of governance tokens, members of the crypto service platform earn voting rights and are allowed to determine the course of a project. Governance tokens remove hierarchy and promote democracy in its true sense. However, the use case of crypto in governance is only found within the crypto industry.
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Internet of Things:
The Internet of Things infers physical objects connected to the internet through the sensors and connectivity embedded in these objects. Despite the revolutionary offer IoT provides, it poses a significant security problem. However, with the combination of IoT and blockchain, the technology behind crypto, the security concerns associated with IoT can be reduced.
Looking forward
All of these use cases point to one thing; the ways we can use cryptocurrencies are still materializing. As the adoption of crypto increases and the industry grows, crypto assets will serve functions that we are yet even to begin to imagine. Although Bitcoin is still the most widely known crypto, other cryptocurrencies are useful beyond buying and selling.
