Ethereum is a very popular platform for smart contracts development and has been recognized as one of the most popular blockchain platforms, used by developers from around the world to create their own decentralized applications and tokens.
We are going to look into some of the best use-cases of the Ethereum smart contract which will help us to understand, what can Ethereum do, why is it so loved by the blockchain community.
Banking and Financial Services Contracts
As banks around the world begin to consider the value of blockchain technology, there is a growing interest in utilizing smart contracts—self-executing codes that are programmed to trigger transactions automatically. Smart contracts can be widely used in mortgages, payments, loans, and other financial services. Future bank transactions can be handled more swiftly and efficiently, saving both money and time. Ethereum Blockchain will become a platform for the development of banking applications, which would provide liquidity for the fiat funds available on the accounts of its customers.
Applications can be built to run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. These apps run on a custom-built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given in the past (like a will), and many other things that have not been invented yet, all without a middleman or counterparty risk.
Accumulated forecasting data is the heart of prediction markets. With the Ethereum blockchain, developers can deploy smart contracts to produce high-quality forecast results. This allows users to buy and sell voting shares on outcomes in the form of event contracts. Event contracts allow anyone to create an outcome-based market that others can participate in. Prices are determined by participants and the contract’s creator can be paid out based on how accurate they were.
Using simple surveys deployed on Ethereum’s blockchain, you can create a financial incentive for people to come and make predictions about the things you care about. Rather than making predictions yourself (which are biased), you can objectively evaluate the opinions of others, turning large numbers of forecasters into a powerful collective intelligence platform capable of predicting future events.
Accurate forecasts and research results can be made more quickly and cheaply using the Ethereum blockchain. Ethereum allows forecasting market creators to reduce the risk of censorship, collusion, and manipulation of their participants. It also can be used for researches to build open-source forecasting toolkits.
Ethereum Escrow system is where a third party holds in custody an amount of ether to be transferred to another person. Both parties involved must agree on a release trigger condition or conditions for the platform to transfer the funds between parties. Using the power of the Ethereum blockchain creates an unbreakable trust for all parties involved. The secure digital system provides immutability and transparency securing both incoming and outgoing transactions.
Ethereum escrow funds can help guarantee payment for services rendered. If you’re a freelance worker, a customer can pay for the completion of your task by releasing escrow funds to an Ethereum smart contract. When the job is done, you will be able to claim funds from the contract.
Blockchain technology is a great new way to raise funds for any venture, and it will completely eliminate the high fees of traditional crowdfunding. In this way, backers won’t take a risk because the smart contract will return all their money if a specified condition isn’t met.
Ethereum allows you to create a crowdfunding contract without high fees of 3-10% on most platforms. It offers you a smart contract that is immutable (the code can’t be changed) which means that no one has the power to stop the execution. For instance, after receiving the payments, you will have to return the money if you don’t reach your goal.
This is the future of crowdfunding. No high fees, just enough to cover the cost of sending Ether (the base currency on the Ethereum network). With more than 75 million users of cryptocurrency wallets, it is only a matter of time until the adoption spreads to all parts of our lives.
Initial Coin Offering (ICO)
Today, if you want to buy tokens sold through an ICO, there’s no way to know how much money has gone into the project and who are the developers. This makes it risky for anyone to participate in them.
By incorporating Ethereum’s smart contracts, the ICO process can be simplified and made more transparent, effective, and democratic. In an ICO, a certain amount of the crowdfunded cryptocurrency is preallocated to the development team responsible for a successful project. This reduces mismanagement of funds as the money is predefined.
The ICO using Ethereum solves three main problems: no trust or middleman for interactions, long-term resale value, and token scarcity. This can be achieved by tying smart contracts to off-chain resources and allowing the users to judge the service through these instruments.
Online Gambling, Casino, Lottery
Now that Ethereum is being used in open-source gambling casinos, everyone can see that ETH is the best cryptocurrency for online casino users, as it is a decentralized, open-source blockchain with smart contract functionality.
The Ethereum currency system is in its infancy and is being used at several online gambling sites that have the know-how to use it correctly. Many of these sites are using Ether bets for their casino, lottery, and sports betting. There are also a growing number of sites that are putting together some pretty attractive game tables like roulette and poker.