by The Ethereum blockchain expanded on Bitcoin’s vision of a peer-to-peer payment system by offering users a marketplace of dApps. It offers users security, control, and efficiency through its innovative features, such as Smart contracts. Smart contracts are a vital innovation in the Ethereum network, as they are self-executing contracts that facilitate and verify transactions on its blockchain. It enables a variety of applications in fields such as decentralized finance (DeFi), gaming, supply chain management, and advertising. Ethereum is powered by its native token, Ether (ETH), and also enables users to create new ETH-based crypto-tokens built on the ERC-20 standards.
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Innovative uses of blockchain
Decentralized Finance (DeFi)
The DeFi space has gained significant traction over the last few years as it disrupts the traditional finance sector. It offers a wide range of financial products and services with better rates and terms than conventional financial institutions such as banks. DeFi offers financial services such as lending, borrowing, interest-earning products, payment services, and insurance. DeFi services and products are predominantly offered on the Ethereum blockchain through dApps. DeFi products and services do not need intermediaries to facilitate their functions.
Digital art
NFTs have become very popular over the last two years and are another example of Ethereum innovation. They have transformed the art world by providing a vital feature: provenance. Although NFT marketplaces have popped up on alternative blockchains, Ethereum has the largest marketplaces, which include SuperRare and OpenSea. Even traditional auction houses have realized the potential impact of NFTs and have held several NFT auctions that have successfully sold NFTs, such as the single NFT work of the artist Beeple that sold for about $69 million in 2021. Some popular NFT collections include Bored Ape Yacht Club, CryptoPunks, and CryptoKitties.
Gaming
Another sector that is benefiting from blockchain innovation is the gaming sector. It is realizing the power of Ethereum innovations such as NFTs that turn the ownership of in-game rewards and items into assets. Popular play-to-earn crypto games such as Sandbox and Axie Infinity allow gamers to earn crypto assets that can be traded or sold. Users can also perform digital land sales, attend in-game concerts, and buy limited edition NFTs in the play-to-earn space.
Read more: What is Ethereum
Ethereum tokens unlock new applications through blockchain innovation
Uniswap(UNI)
Uniswap is an Ethereum decentralized exchange, and UNI is its native token. You can buy, sell, or trade Ethereum tokens without the need for intermediaries on this platform. You can also supply tokens to liquidity pools to earn crypto rewards and enable peer-to-peer trading.
The price of UNI is $5.3, and it has a market cap of $3.4 billion at the time of writing.
Aave
Aave is a lending protocol available on the Ethereum network where lenders can invest ETH tokens into liquidity pools to earn crypto rewards. Borrowers can put their crypto assets up as collateral to borrow more crypto. The interest rates are based on the utilization rate of the liquidity pools, and lenders can earn a passive income from the interest paid on loans without the need for intermediaries. AAVE is the native token of this protocol, and AAVE holders have the power to vote on any changes to the protocol.
The price of AAVE is $64.2, and it has a market cap of $930 million at the time of writing.
Decentraland
Decentraland is a virtual real estate platform that allows users to create and monetize digital properties. You can use its native token, MANA, to buy crypto assets and avatars on its marketplace.
The price of UNI is $0.38, and it has a market cap of $732 million at the time of writing.
Conclusion
The impact of Ethereum tokens on unlocking new blockchain use cases cannot be overstated. Ethereum is at the forefront of shaping the future of blockchain innovation. Tokens like UNI and AAVE show the extent of Ethereum’s innovation and influence. Many crypto projects benefit from its wide user adoption and contribute to the ongoing growth of the Ethereum ecosystem.
How to buy Ethereum in India?
You can buy Ethereum through ZebPay. Join the millions of traders already using the platform. Download the ZebPay App through the playstore or the App store and enjoy seamless crypto trading on the go.
