The cryptocurrencies
have surpassed a lot of hurdles and have stood out with its immense value even
in this “Black Swan” corona crises. Despite the debates and messes around the cryptocurrencies,
everyday new crypto coins are being launched in the coin market cap. As of now,
the number of crypto coins listed in the market space is 5500+! Even though
many countries are in chaos to legally accept cryptocurrencies for their
transaction, the developed countries have adopted the crypto payment
system.
In this blog, let’s
look into the 5 significant uses cases of cryptocurrency wallets!
5 Significant use cases of cryptocurrencies
E-Cash
The cryptocurrencies
are invented as digital currencies that can be used as a medium of exchange for
trade. Later, due to the high value of BTC, it became unsuitable for low
transaction amounts. In 2017, the fork of bitcoin came out as “Bitcoin Cash”,
which is widely accepted as the desired payment method in developed countries
for all kind of payment transactions. Merchant shops also accept crypto
payments in their POS system, thereby reducing the intermediary transaction
charges incurred by fiat payment service providers.
Cryptocurrencies
promote the P2P transaction among merchants and consumers. Ease of payment and
reduced transaction charges encourages consumers to pay via Bitcoin cash and
other crypto coins!
Programmable Asset
Cryptocurrencies have
paved the way for the rise of smart contracts. Even though smart contracts were
invented before cryptocurrencies, it got drastic use case on the crypto
invention. The smart contracts are automated executable code that performs a
task on satisfying the specified conditions. These executables are built on
blockchain framework and can’t be altered after deployment.
Ethereum blockchain
platform has drastically hosted a successful number of smart contract
protocols. Now, the entrepreneurs and industry experts are leveraging the
programmable feature of cryptocurrencies for their enterprises.
Collaterals
Trade platforms,
investments and other lending platforms prompt their users to submit legitimate
collaterals to enhance trust and security. The cryptocurrencies are accepted as
a valuable asset by most of the countries. Crypto coins are recognized as
collateral in many lending and exchange platforms.
With cryptocurrencies
as collateral, investors can fetch fiat loans and vice versa. By submitting the
cryptocurrencies as collateral, there is an option to earn an interest in
lending platforms, which functionalizes as like our traditional deposit
accounts.
Governance
Crypto tokens are now
utilized for voting lines and community governance. The crowdfunding campaigns
like ICO, IEO or IDEO are rising in peaks. The fundraisers can proceed with
voting lines and suggestions within the community by utilizing the user base of
token holders.
Technical discussions,
bounty campaigns and other polls can be held with the community users of crypto
coins. Community governance can bring up error-free data transactions and
traverse of process flow.
Collectables
Blockchain gaming
platforms like Cryptokitties reward their users with crypto tokens which are considered
as valuable collectables by the market space. Crazy game players collect these
virtual coins and trade them across the community sphere. As the community of
gamers grow, the value of crypto tokens issued by the platform increases.
Wrap-up!
The technologists and
investors are still exploiting the potential of cryptocurrencies. The rising
popularity of crypto-coins has opened up enormous opportunities for
entrepreneurs to launch their businesses. Right from exchange platforms to the
novice P2P lending channels, the crypto entrepreneurs have invented their
business ideologies in the market space. Soon, the cryptocurrencies would hit
our real-time trade transactions!
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