In-Depth Analysis

【BP In-Depth Analysis】Ethereum and ETH- Part 2 Powerful Ethereum Ecosystems

10 Mins read
  • DeFi Ecosystem
  • NFT Ecosystem
  • Ethereum-based DAO Ecosystem
  • KYC & Identity Ecosystem
  • Payments Solutions and Service Providers Ecosystem
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DeFi Ecosystem

DeFi(Decentralized Finance) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries. So far, 191 DeFi projects are built on Ethereum.

💨 Asset Management Tools

AlphaWalletAlphaWallet is a mobile crypto wallet that interacts with smart contracts and dApps.

💨 Alternative Savings Apps

Linen App: Linen App provides a non-custodial wallet and allows you to connect your U.S. bank account to supply digital dollars (stablecoin USDC) to the Compound liquidity pool on the Ethereum blockchain.

💨 Derivatives

Cryptex Finance: Cryptex Finance tokenized Total Cryptocurrency Market Capitalization into TCAP token that gives holders real-time price exposure to this key metric.

💨 Yield Aggregators

Harvest: Harvest automatically farms the highest yield available from the newest DeFi protocols, and optimizes the yields that are received using the latest farming techniques.

💨 Decentralized Exchanges

1inch.exchange: 1inch.exchange split the order to several decentralized exchanges like UniswapExchange, KyberNetwork, Bancor and RadarRelay to avoid high price slippage.

💨 Margin Trading

dYdX: dYdX is a trading platform for crypto assets, built with open-source protocols, enabling decentralized margin trading.

💨 DeFi Infrastructure & Dev Tooling

0x: 0x Protocol is free, open-source infrastructure that developers and businesses utilize to build products that enable the purchasing and trading of crypto tokens.

💨 Decentralized Insurance

InsurAce Protocol: InsurAce is a multi-chain protocol that provides insurance services to DeFi users, allowing them to protect their investment funds against various risks.

💨 Asset Tokenization

OpenFinance: OpenFinance Network is a U.S. regulated trading platform for digital alternative assets.

💨 Decentralized Lending

Aave: Aave is an Open Source and Non-Custodial protocol that lets you earn interest on deposits & borrow assets on multiple chains.

💨 Prediction Markets

Augur: Augur is a decentralized oracle and peer to peer protocol for prediction markets.

💨 Stablecoins

Ampleforth: AMPL is a USD soft-pegged digital currency that adjusts supply daily based on market conditions.

NFT Ecosystem

NFTs are tokens that we can use to represent ownership of unique items. They let us tokenize things like art, collectibles, even real estate. Ownership of an asset is secured by the Ethereum blockchain — no one can modify the record of ownership or copy/paste a new NFT into existence. NFT stands for non-fungible token. Non-fungible is an economic term that people could use to describe things like their furniture, a song file, or their computer. These things are not interchangeable for other items because they have unique properties.

Ethereum-based DAO Ecosystem

A DAO is a collectively-owned, blockchain-governed organization working towards a shared mission. DAOs allow people to work with like-minded folks around the globe without trusting a benevolent leader to manage the funds or operations. There is no CEO who can spend funds on a whim or CFO who can manipulate the books. Instead, blockchain-based rules baked into the code define how the organization works and how funds are spent.

KYC & Identity Ecosystem

Each company has to verify people’s identity somehow, and it’s particularly important for financial institutions. From this ‘know the customer,’ or KYC protocols was the rise to assist companies to ensure they know who they’re doing business with. Typically, this involves an extended, drawn-out practice where certain documents are shown, and a few kinds of background checks or verification takes place.

  • For KYC procedure a user submits documents to one of the banks where he wants to take a loan or use another service.
  • Individual participants are responsible for collecting personal data(banks, government agencies, companies, or users themselves) and stored in a decentralized network.
  • The bank checks and confirms the passage of KYC if everything is normal.
  • The bank is responsible for entering the data about the user into the blockchain platform, to which other banks, organizations and state structures have access. All parties can control and regulate the KYC process. The system will monitor changes and updating of the user data, and if someone breaks the rules, it will become known to all parties.
  • When a user wants to use the services of another bank, this second bank accesses the system and thus confirms the user’s identity.
  • The access to user data will be based solely on its consent. The user must log in with cryptocurrency transactions i.e. use the private key to initiate the information exchange operation.

Payments Solutions and Service Providers Ecosystem

Payments is an area of finance for which blockchain technology is ideally suited — tracking and verifying account payables/receivables, using smart contracts to automate processes and remove third parties, whilst also practically eliminating duplications and errors. Essentially, blockchain provides immutable verification that the transaction has taken place and confirmed by each party. For merchants and banks, the technology makes it safer, quicker and cheaper whilst leveraging the best elements of existing systems and processes and upgrading areas where step change improvements can be made. With distributed, immutable features providing improved privacy, accuracy and security, it would be difficult to find a use case in financial services that would not benefit from adopting blockchain. Banking, lending, insurance, trade finance and asset management would all benefit from using the technology.

Epilogue

In this article, BlockPower has introduced the different powerful ecosystems of Ethereum. And in the next article, we will introduce the $ETH Economic Model. Don’t forget to follow us to get more information.

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