The latest trend in the crypto market, Ethereum, has become popular by providing multiple services and opportunities for investors. This decentralized blockchain was created in 2015 and has thrived since. Even though the usage of Bitcoin inspired it, Ethereum offers much more than that: it’s a place where users can build applications that can handle complex financial data, buy NFTs and run nodes.
Basically, everyone can contribute to the platform’s development, which led to an upcoming change to the blockchain: from proof-of-work to a proof-of-stake mechanism. This will make it easier for users to process transactions and create new blocks. Given that the supply chain is unlimited in Ethereum, that will be among the biggest developments in cryptocurrency.
Without further ado, here’s what you can do with Ethereum in 2022!
1. Use It For Transactions
Like all cryptocurrencies, Ethereum has its virtual currency, Ether, with which you can pay for transactions, so it’s similar to what you can do with Bitcoin. You can buy, sell, trade peer-to-peer or actively trade with it, so let’s get more in-depth about Ethereum’s transactional usages.
If you want to buy Ethereum, you’ll need to choose a cryptocurrency exchange first that allows customers in your region and then register with it. Then, decide your deposit method (bank wire transfers, credit and debit card payments) depending on what fees suit you best. To acquire
Ethereum, you’ll have to connect your bank account with your digital wallet so that you can start buying shares. Selling Ethereum works similarly. If you’re interested in the Ethereum price, know that it can fluctuate due to the supply and demand for products, services, currencies and other investments.
On the other hand, if you’re interested in peer-to-peer trading, know that you can do it in-person or online via a platform. Users can place and respond to offers (crypto assets) on the marketplace, helped by escrow features to operate processes more smoothly with minimal risk. Lastly, if you’re interested in active trading, you would need more experience in the blockchain, but basically, you’re “buying low, selling high.”
2. Execute Smart Contracts
Smart contracts can be defined as computer programs stored on the blockchain that allows you to convert traditional contracts into digital ones. In other words, they are agreements that turn the terms into computer codes. Through smart contracts, you can create currencies, store data, mint NFTs or generate graphics, but you can also:
• Get stablecoins, designed to remain at a fixed value;
• Create and distribute unique digital assets (NFTs in the form of artwork, fashion, in-game items, etc.);
• Use DEXs (decentralized exchanges) to connect with buyers and sellers;
• Use Dapps for decentralized gaming using collectibles that hold real-world value;
• Have decentralized insurance that pays out automatically for flight delays, crypto wallet and much more;
• Create customized, interoperable currencies through developer-friendly languages, such as Solidity and Vyper.
Smart contracts provide you with autonomy, backup, safety and accuracy. In the future, it is believed they’ll make crucial changes in certain industries, like law, credit companies and accounting.
3. Buy NFTs
NFTs (non-fungible tokens) are taking the digital art and collectibles world by storm. Now, digital artists have many opportunities to sell their work and make themselves known in this decentralized blockchain. Ethereum comes as a solution for replicating the properties of physical items, as NFTs allow you to assign or claim ownership of unique pieces of digital data.
An NFTs can be anything from digital art (GIFs, music) to real-world items (tickets to an event or legal documents), and they have unique properties. For example, NFTs can have a single owner at a time minted through smart contracts that assign ownership.
You can also create NFTs on the blockchain, which allows you to prove that you’re the creator easily and automatically earn royalties every time they’re sold.
4. Own DAOs
Decentralized autonomous organizations (DAOs) function on smart contracts. Communities own them without centralized leadership, and it’s a safe place to commit funds to causes and collaborate with people. Changes and decisions are made through members voting.
DAOs include charity organizations, ventures or freelance networks. For example, if you start an organization with other people, by using the DAO’s code, you benefit from transparency and public activities, which is why the services offered are handled automatically in a decentralized manner.
DAOs work as memberships, and different models have distinct voting approaches:
• Token-based membership: holding a governance token grants access to voting;
• Share-based membership: members can join if they’re offering valued tokes;
• Reputation-based membership: members must earn reputation through participation to acquire voting power.
Ethereum is the best place for DAOs, because the community is collaborative, which helps systems emerge quickly. Moreover, the smart contracts on the blockchain can’t be modified once live, and they can send or receive funds so that the organizations can trust the network.
5. Run A Node
If you have more experience with such systems, you can run a node (software) that downloads a copy of the blockchain to verify the validity of every block. By doing this, you’re keeping Ethereum up-to-date with new blocks and transactions and can also help others download copies.
What’s interesting with running a node is that you don’t even need ETH or to be a miner. You may not have the same incentives, but you’ll benefit from:
• Privacy and security, so that third-party nodes won’t be able to access your information;
• Censorship resistance, where no one can stop you from receiving payments or using services on Ethereum;
• Becoming a part of the global movement toward decentralization;
• Choosing your own client if you’re staking ETH;
• Sovereignty by having your copy of the Ethereum blockchain.
Ethereum is the second largest blockchain on the market, with an unlimited maximum supply and an enormous place for different transactions. It’s the place where developers can create new apps, technologies and NFTs, which is increasing its popularity.
We don’t know what the future holds for Ethereum. Still, with the most recent planned change (from proof-of-work to proof-of-stake), mining will be easier and more profitable, allowing Ethereum to remain a leading cryptocurrency.