Unleash Practical Applications of Cryptocurrency
With a lot of hype around cryptocurrencies worldwide, it is important to focus on practical cryptocurrency applications too. According to Statista Global Consumer survey reports, countries like Brazil, the U.S., India and Germany witnessed an increase in crypto users & owners between 2018-2019 and 2021-2022.
Each technology undergoes hype cycles and crypto has seen a lot of hype cycles. You may see experts asking people to invest in crypto today and the next year they may call it a stupidity. Just like any new technology, blockchain and cryptocurrencies have seen ups and downs. Despite all skepticism, cryptocurrencies have transformed several industries and have been game changers in the supply chain, finance, healthcare etc helping investors to gain wealth, and faster money transfers without the need for middlemen.
While speculations and hype cannot be ignored, we need to focus on crypto beyond speculations by looking at the benefits of practical use cases of cryptocurrencies like sending international payments or cross-border payments faster at affordable rates, earning and spending digital currency, keeping transactions secure etc.
Defi Explained for beginners, Benefits and Future
DeFi explained in simple terms can help users understand it better. It is decentralized finance used for several financial applications in cryptocurrency/blockchain intended to discontinue the need for financial middlemen. It uses secure distributed ledgers.
Benefits of Defi
Let us explore the benefits of Defi over conventional finance
No Middlemen
Defi is free of middlemen which are present in old finance methods like brokers, banks etc. Defi allows you to take control of your assets without middlemen intervention.
Accessible
Old finance methods are not easy to access due to different limitations. Defi is highly accessible and you can access it with an internet connection.
Secure
Defi is based on smart contracts where the rules are enforced immediately upon the agreement. This reduces the room for errors making Defi more secure.
Transparent
With Defi, you get 100% transparency as you know where your money is invested and how it is used.
Flexible
You can create financial services and products with Defi on your own with the help of smart contracts. You can customize financial tools to match your needs.
Affordable
Defi comes with lower fees which allows you to save money for financial services.
Benefits of Decentralized Finance
Future of DeFi
- > $20 billion was invested in Defi products in 2020 (November) mainly on Ethereum.
- The next year the worth value increased to $260 billion and $19 million was the only contribution of Binance Smart chain.
Crypto for affordable and faster international payments
International payments with crypto are not only faster but also affordable. Bitcoin offers a perfect method to perform remittances. Let us have a look at the advantages of crypto for international payments.
Benefits of Crypto payments
Cheap and fast payments
The decentralized system is created to promote faster payments at a minimal fee. As the remittance costs are low, you can save a lot to send money abroad. The miner directly gets the payment for Bitcoin transactions.
24X7 services
There are no holidays or off hours or holidays on festivals. You can access the Bitcoin network round the clock and throughout the year without any delays.
Transparency
Liberty
Bitcoin is a decentralized system which enables a private payment platform that is not controlled by any financial firm or government. This gives you the liberty to send as much money as you want to from anywhere, at any time and to whoever you wish to.
Benefits of Cross Border Payments
NFTs and its Applications in Different Sectors
NFTs Explained
NFT or non-fungible token means uniqueness and cannot be replaced. When it comes to cryptocurrencies and physical money, they are fungible. It means NFTs can be exchanged or traded.
An NFT marks the ownership of a work which can be digital art, digital media or work already present online at no cost.
Every NFT comprises of digital signature which represents uniqueness. NFTs are online assets which can be audio files, photos, videos or in a different digital format. Some NFT examples involve comic books, artwork, trading cards, sports collectables, games etc.
How do NFTs work?
- GIFs
- Art
- Videos & sports highlights
- Virtual avatars
- Video game skins
- Music
- Designer sneakers
Use cases of NFT
Real Estate
NFTs and real estate complement each other. NFT when timestamped can be utilized to transfer land agreements, reflect ownership, and track the change in value of a property in a certain period.
Gaming Sector
NFT can be integrated into the gaming sector by promoting cross-platform play. It means if players have some items/characters already, they will keep playing the game. NFTs allow developers to establish their brand and earn more.
Digital Art
The art world has gained a lot from NFTs. Digital artist can tokenize their art with the help of NFTs get digital art ownership, and source in a digital format. It helps the artist monetize their work without relying on auction houses or galleries.
Ticketing
NFTs are going to replace tickets in the coming years. For example, it can replace the parking cards to enter parking lots that need validation to enter.
Supply chain
NFT helps supply chain management in different ways. It offers a transparent and secure way to monitor the movements of materials and goods. It can be utilized to portray raw materials, components, and products and can record data about the ownership, history and location of the asset.
Conclusion
Cryptocurrencies are reshaping the economic interaction, trust and value. Well, risks associated with cryptocurrency cannot be ignored and need to be addressed with care.
Apart from the risks, we cannot neglect the fact that the growth, innovation, power and positive impact of cryptocurrency are immense.
By integrating this innovation with confidence and knowing its opportunities, you can make the most of this financial revolution that goes beyond conventional boundaries to offer a more secure and transparent financial system.
The journey of cryptocurrency goes beyond speculation rather a beginning towards an enhanced and transparent platform for financial transactions that needs no middlemen. Cryptocurrency holds a sorted system where you can gain complete control over your finances and have a bright future ahead.
