Top 4 Cryptocurrency & Blockchain Use Cases
The cryptocurrency and blockchain industry is a novel and exciting industry that has seen the creation of some very innovative technology. Society is and will likely continue to see the increasing integration of cryptocurrency and blockchain technology in every day life. This article will take a look at the various use cases that are poised to face the disruptive potential of cryptocurrency and blockchain technology.
- Fiat Currency
The first area that is currently facing disruption is fiat money i.e. the dollar, euro etc. These traditional currencies are increasingly being replaced by cryptocurrencies such as Bitcoin and Ethereum. These digital currencies, especially in the case of Bitcoin, were developed to solve many of the issues that come with holding fiat currency. For example, unpredictable money printing and centralization of power in the hands of the few. With cryptocurrency, the goal is to decentralize this power and, by extension, solve many of the problems that come with the centralization of power in the hands of the few.
- Decentralized Finance (DeFi)
Another area that is facing significant disruption is in the DeFi space. DeFi refers to a growing number of blockchain-based financial protocols that aim to disrupt the traditional financial system. Currently, financial activities such as lending and sending and receiving money are riddled with a number of problems. For example, the simple act of sending money abroad often takes a long time and also come with high transaction fees. DeFi applications such as lending protocols remove the need for a middleman, and instead encourages a decentralized and trustless financial ecosystem.
Law is another area that is facing significant disruption as the development of cryptocurrency and blockchain technology continues. Self-executing smart contracts are providing a way for agreements to be enforced, removing the need for a middleman. The integration of cryptocurrency and blockchain technology will likely change the way the law is practiced and also taught, including LSAT course providers in the US and SQE course providers in the UK. Nevertheless, it will be interesting to see the technologies and applications that will result from the disruption caused by blockchain and cryptocurrencies.
The core value offering of cryptocurrency and blockchain technology is the removal of middlemen. Middlemen come with numerous disadvantages such as: central point of failure, centralization and abuse of monopoly power (i.e. by higher fees). Blockchain technology in particular addresses these problems by decentralizing power amongst many individuals. This core value offering of blockchain technology in disintermediating middlemen will likely materialize in the context of the sharing economy. It is not too difficult to imagine centralized sharing economies such as Uber and Airbnb being replaced by decentralized blockchain based ecosystems.
This article is just scratching the surface in terms of the use cases that will see disruption by blockchain technology and cryptocurrency. We will likely see the number of use cases grow as the industry continues to innovate and mature.