For many people on the outside looking in, it might seem that cryptocurrency is all about Dogecoin, getting rich quickly, and using complicated language when discussing how the industry works.
But this could not be further from the truth.
Cryptocurrency and the underlying technology serve a tremendous purpose to the broader economy. Whether it is advancing financial technology (Fintech) solutions or finding answers to how certain marketplace sectors could improve operations, crypto’s utility is immense. Vast swathes of the global economy have already integrated crypto and blockchains into their day-to-day business affairs.
So, here are five use cases for cryptocurrency today:
While banks and financial institutions continue to be the most used mediums of storing cash, cryptocurrencies are an alternative medium.
Unlike banks, self-custodied cryptocurrency wallets cannot be frozen by authorities. As a result, only cryptocurrency owners possess access to their crypto balance.
Cryptocurrencies can now be used to make payments to merchants. These include restaurants, online applications, jewellers, air tickets, tuition, and so much more. Even Apple currently accepts cryptocurrencies as a form of payment in their App Store.
Similarly, comparable to how the public invests in cash through a wide range of money markets, foreign exchange, or guaranteed-investment certificates (GICs), cryptocurrencies are also a form of investment. Bitcoin is one of the most popular cryptocurrencies available today, and while cryptocurrency prices may change rapidly, these digital currencies are expected to become stable in the long run.
Indeed, cryptocurrencies are convenient and easy to use. They are also an efficient way to transfer value and are more secure than traditional currency. It is estimated that 50 percent of all transactions of cryptocurrencies are related to payments made for goods and services, investments, tuition payments, and donations. Whether you use it to invest or store, the possibilities with cryptocurrency as digital cash are plenty. The number of retailers who accept cryptocurrencies is gradually increasing.
Smart contracts are paperless digital codes that offer a guarantee on specific terms and conditions mutually agreed upon by the parties involved. The chief objective of a smart contract is to automate actions and agreements. Once finalized, a smart contract cannot be modified. Therefore, it is a security agreement that cannot be altered in any form. The data based on which the contract is generated is completely secure and available on a reliable network.
Surprisingly, smart contracts are already being used in different sectors, including finance, healthcare, and governance. It is believed that the use of smart contracts will grow within the commercial sector.
Moreover, people do not have to be physically present with smart contracts, but the actions agreed upon in the contract can still be initiated and completed automatically. Different cryptocurrencies can be used to implement the contract, and the verification process is much faster since it is all automated.
Years ago, one of the major buzz terms was the Internet of Things, or IoT. Everything was IoT.
Well, the future is now.
IoT is a fast-growing industry that has the potential to transform our homes, cities, workplaces, farms, and everything else in between. IoT is designed to make everyday life more efficient. Cryptocurrencies can be used to power IoT. Since cryptocurrencies are known to have the ability to provide high secular levels and protect data, many of the challenges associated with IoT can be overcome if cryptocurrencies are used to power it.
A digital ledger, for example, could be used with an IoT device and would facilitate transactions related to installation, repairs, and interactions with other devices. Data would be secure and encrypted, and there would be a much lower risk of fraud and data breaches.
Cryptocurrencies are an investment opportunity for metals. Investors can purchase digital commodities, such as gold or other metals, through blockchains and smart contracts, which can be performed over the internet. Put simply; there is no need to purchase anything physically.
Many people believe that cryptocurrency is the new "digital gold." While the volatility of cryptocurrencies can trigger some consternation for some people, the fact is that cryptocurrencies and investment in digital metals provide total investment and control to the investors. Blockchain technology records every transaction, making the system highly transparent.
In addition, investing in digital metals backed by cryptos is a simple and uncomplicated process and is not very time-consuming. There are no visits required to banks. No long agreements to sign. Everything happens digitally. It is fast, convenient, and inexpensive.
Digital Infrastructure for Moving Objects (DIMO) is a user-owned connected vehicle platform with the aim of connecting physical objects and structures to software systems. The end result consists of data consumers accessing anonymous information pertaining to a diverse array of things, such as traffic, weather, battery performance, and automated driving systems. This could then be used for a variety of new apps, from smart insurance to ride-sharing.
The vehicle owners receive $DIMO tokens in exchange for the anonymized data.
Remember, the cryptocurrency sector is only a little more than a decade ago. It is still developing, honing its technology, and innovating the digital ecosystem. Crypto is a maturing industry that will continue to improve internal mechanisms and bolster current goods and services. Crypto’s utility is enormous, and as builders and investors persist in their involvement in this realm, the use cases will only grow over time.