Are you looking for a platform through which you can develop decentralized applications (dApps)? If so, the Ethereum blockchain came into the concept. Another blockchain project that offers a platform for creating and deploying decentralized apps is the Ethereum blockchain. It came right after one of the most famous blockchains Bitcoin but the interesting thing is that the Ethereum blockchain is used for online transactions as well as a platform that is used to develop apps. Well, in this article, we will discuss a detailed discussion of what Ethereum Blockchain is and its Key Use Cases. So, buckle up, and let’s get started!
What Is Ethereum Blockchain: and Its Key Use Cases
Ethereum blockchain is an open-source, decentralized blockchain network and was introduced right after the Bitcoin blockchain. Now, you are thinking that when the Bitcoin blockchain already existed then why Ethereum blockchain? So, the Bitcoin blockchain has very limited functionality and is only used as a decentralized payment method. Ethereum blockchain was developed to provide a more versatile platform for blockchain developers. Here the developers can develop a decentralized application (dApps) and can deploy their smart contracts on the Ethereum blockchain ecosystem. Smart contracts make the entire network more secure as it's a set of rules and agreements between two parties. When the declared agreements meet by two parties, the smart contract would automatically execute as well as it excludes the involvement of intermediaries or centralized authority. Furthermore, the main goal of the Ethereum blockchain is to create a trustworthy, secure, and decentralized platform that only works according to the smart contract.
Ether (ETH) is a native currency of the Ethereum blockchain, which is used to pay incentives to the validator of the transaction and as a gas fee.
Ethereum has a number of use cases that are not possible to discuss at all. But here we will discuss some important of them so let’s discuss all of their use cases one by one:
- Decentralized Finance (DeFi): In decentralized finance (DeFi), Ethereum plays a vital role in developing decentralized lending, borrowing, and trading applications. To run all these applications, their smart contract must be deployed first on the Ethereum blockchain.
- Gaming Platforms: Ethereum also allows the developers to create a gaming platform where users can join, play the games, and in return can generate revenue. On these gaming platforms, users can also buy, sell and create gaming assets such as skin, land, characters, and others.
- Supply Chain Management: One of the well-known use cases of the Ethereum blockchain is supply chain management. In this use case, the user can track the food supply from where it comes, where it stays, and when it would be delivered. Supply chain management ensures the authenticity and verification of food as well as increases transparency and decreases the risk of any fraudulent activity.
Well, all these given are the most commonly used uses of the Ethereum blockchain. There are so many other use cases such as Identity verification, Tokenization, Secure storage, and the Healthcare industry.
In conclusion, the Ethereum blockchain is an open-source and decentralized blockchain ecosystem and it helps blockchain developers to develop a decentralized application using solidity language which is very tough and hard to do. Developers can build (dApps), and deploy their smart contract on the Ethereum blockchain, and onward the user can use these apps. (dApps) provide the next level of security to their users as well as eliminate the involvement of intermediaries. Furthermore, the main purpose of Ethereum is to build a trustworthy and secure platform.