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What are practical applications of Ethereum?

When it comes to cryptocurrency, everybody thinks of Bitcoin immediately due to being the first digital money. But, how about Ethereum? Why does Ethereum attract so many investors?

From my point of view, Bitcoin is only a tool for transacting and a bait for Sharks to surf. Ethereum has much more practical applications. In this article, I will prove this point. Below, I will list some of Ethereum practical applications.

What are practical applications of Ethereum

What are practical applications of Ethereum?

Practical applications in present

1, Transaction System

On the side of payment, Ethereum is similar to Bitcoin, which are all convenient payment methods. If Bitcoin bases on Bitcoin Blockchain architecture, Ether also bases on Ethereum Blockchain architecture. Since the born of Ethereum, there are many arguments that it could be used as common currency for the whole World. This viewpoint is not irrational due to its security, transparency and convenience.

2, To invest in Gold

Ethereum network is used by engineers from Digix to build an app for Gold investment. Digix is used to buy Gold Token via official money or Ether. These Tokens are encrypted complicatedly and are link securely with miners in Singapore. If Digix is down, you still can these Tokens for real Gold without any intermediate organizations like Banks, agencies, Gold shops.

3, Public funding

Some organizations like Indiegogo and Kickstarter used Ethereum network to build and develop public funding system. All you need to do is ideal and target, who see your idea is potential will invest in by cryptocurrency. After funding, Kickstart will take 5% of your total funds as the fee, the other 95% will in the startup’s control. Investors are ensured to get their money back if the startup is successful through Smart Contract.

4, Financial Management

In May 2016, the biggest community fund in the World called The DAO was established. The nature of The DAO is a venture capital fund basing on a decentralized voting system, which was developed with Smart Contract architecture, to make reasonable investment decisions. This is considered as a revolution experiment. However, this project has not proved its success ability yet. If The DAO is successful, The World will run in a new way when businesses, governments and individuals will use Blockchain for financial management.

Practical applications in future

1, Internet of Things

This is an idea that humanity is always willing to. When this happened, everything in this World will be connected, it is not only between humans and humans but also between things and humans, things and things. By using a device called Ethereum Computer (https://slock.it/ethereum_computer.html), everything will be under control of the computing. For example:

When an ATM runs out of money, there will be a need for humans to check and put money in. Moreover, to put the money in, there are a lot of papers that need to be signed, and there are many reports that need to be sent. This is such a time-consuming process. When using Ethereum Computer, ATM will be connected to accountant system and money will be added to the ATM automatically without human intervention.

2, The Prediction market

Gnosis (https://gnosis.pm/) and Ethereum (https://augur.net/) are two Prediction markets basing on Ethereum network.

3, Web hosting

Swarm is an important project using Ethereum, which is developed by Viktor Tron. Through Swarm, Web hosting services will be provided to many people. A distributed web hosting will be stored in every place at the same time. This technology helps to figure out all DDoS attachments from someone that are trying to attack your website, and it will protect your website from this person. Moreover, even Government will be not able to affect your website.

4, Social Network

As everybody has known that Mark Zuckerberg is the owner of the biggest social network in the World – Facebook. But, not many ones have known that Mark Zuckerberg is reading your messages daily. Do you concern for those pictures that you have deleted exit in the Facebook system? It is not only Facebook, every social network operates in the same way, everything is managed by on server system. Thus, Akasha (http://akasha.world) was born basing on Ethereum Blockchain to solved this problem. When using Akasha, you can get free of concerns about your privacy.

5, Energy management

With Ethereum, you can send some of your energy that generates from solar panels to your neighbours automatically, when you have already had enough the energy. You can also exchange it for some money if you do not want to share it freely. This is great, right? TransActive Grid (http://transactivegrid.net/) will help you to do that.

6, Marriage certificate and Testament

It sounds weird, but this is absolutely able to do with Ethereum application. You can save your marriage certificate or will in the Blockchain. The Smart Contract technology will help you ensure all of the terms will be executed.

7, Financial market – election – real estate

To make sure that everything will be fair, no manipulation, no cheating, it is the time to use the Blockchain technology. This network will make everything transparent.

Conclusion

With some examples above, I hope that you can see the potential of Ethereum technology. Hopefully, with the development of Blockchain technology and Smart Contract, this World will operate in the new effective way. Remember that, Ethereum is only in the very first step of development, this technology is not perfect yet. Let’s see in the next 5 or 10 years, what Ethereum can bring to us.

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