In-Depth Analysis

【BP In-Depth Analysis】Ethereum and ETH- Part 4 $ETH Application Scenarios

7 Mins read
In-Depth Analysis

【BP In-Depth Analysis】Ethereum and ETH- Part 4 $ETH Application Scenarios

7 Mins read

Other Parts of 【BP In-Depth Analysis-Ethereum and ETH】

Part 1 The Development History of Ethereum

Scenario 1- Decentralized Finance (DeFi)

One of the most promising real-world use cases for Ethereum is decentralized finance applications, also often abbreviated as “DeFi”. This includes smart contract-powered loans, minting of stablecoins, and decentralized exchanges.

Smart Contract-Powered Loans

Crypto loans are the loans that a borrower avails by collateralizing their crypto assets. It provides the crypto lenders with interest payments known as the ‘crypto dividends’ in exchange for the crypto loans that they lend in the form of fiat currency. The person taking the crypto loan gets fiat loans from the lender in exchange for crypto assets or currencies like ETH. These crypto-assets and currencies then act as securities if the borrower is unable to pay them back.

Minting of Stablecoins

Decentralized Exchanges

Decentralized exchanges, also known as DEXs, are peer-to-peer marketplaces where cryptocurrency traders make transactions directly without handing over management of their funds to an intermediary or custodian. These transactions are facilitated through the use of self-executing agreements written in code called smart contracts.

Scenario 2- Digital Identity

The way people identify themselves has barely changed in the past 5 decades. People still use passports, passports are still made of paper, people still need to carry around everywhere. One of the main reasons why people have not shifted to a digital system yet is that it’s hard for Governments to check the authenticity of an online document even until now.

Scenario 3- Tokenizing Real-World Assets

Many expect the security token market to be a multi-trillion opportunity, and Ethereum could prove to be one of the platforms enabling this shift. In essence, security tokens are a blockchain-based representation of real-world assets like stocks, precious metals, real estate, and more. By tokenizing these assets on a blockchain, issuers can transfer and transact in them much easier than if they only had a contractual representation on paper.

Scenario 4- Health Applications

Ethereum will completely revolutionize the healthcare system. All hospitals around the world can store, access, and share their patient’s records. This is a key factor in developing new vaccines for viral outbreaks, or even preventing them firsthand. People can go to a doctor in Thailand for a checkup when they are on holiday and to a hospital in New York when they are back home again, and both will have the same information about them.

Scenario 5- Politics

Some people will register their vote for the political party they think should lead their country every couple of years. The fact is, although people are told that they live in a democracy, it wouldn’t be the first time that the results of the polls are altered.

Scenario 6- Storing Data

Companies like Dropbox or Microsoft store huge amounts of data in so-called server farms. A server farm is basically a building where hundreds of servers are used to store information. The problem with server farms is that the company concentrates a large fraction of its storage capacity on a single location. Therefore, the company can suffer substantial losses if it is destroyed by a natural disaster or a terrorist attack.


Although Ethereum is often criticized for its scalability limitations, at the time of writing it is still by far the most popular platform for decentralized applications, and has the most amount of real-world use cases.

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