How to use crypto: 8 digital asset utilities

What is crypto?

Centralized finance vs. blockchain platform. Source: ResearchGate
  • cryptography
  • decentralization
  • consensus mechanisms

Quick overview of blockchain technology

Steps of Bitcoin transaction. Source: CryptoManiaks
  • Financial services
  • Vehicle titles
  • Polling and voting
  • Healthcare
  • Movie industry

Types of Cryptocurrency

Bitcoin

Altcoins (alternative coins)

Tokens

Stablecoins

Meme coins

Top 5 meme coins by market cap as of August 5, 2022. Source: Coinmarketcap

Top 8 digital asset use cases

Use case #1. Financial transactions

Use case #2. Crypto banking

Use case #3. Investment (store of value)

Use case #4. Asset tokenization

  • Increase the market liquidity of their assets in the physical world
  • Give access to investors that were previously excluded from the market

Use case #5. Transaction fees

  • move ETH between digital wallets
  • swap ETH to ERC-20 tokens
  • access play-to-earn games
  • use decentralized finance protocols
  • purchase NFTs
  • Securing the network. If transactions were free, spamming would be easy — hackers could send millions of messages and bring the network down. Fees are a crucial safeguard for smart contract execution.
  • Incentivizing the node. Depending on the consensus algorithm, nodes could include miners, validators, or other types of users responsible for proposing and validating blocks on a blockchain. The higher the tip paid by users, the higher the chance of their transaction becoming part of the next blocks.

Types of incentives

Proof-of-Stake. Source: Ledger.com

Use case #6. Governance

Some of the benefits described by the MetaBrewSociety. Source: MetaBrewSociety.com

Use case #7. Crypto gaming

Use case #8. Equity tokens

Buying and selling digital currencies on crypto exchanges

CeFi vs. DeFi

Looking ahead: digital assets and their use cases

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CoinLoan is a Crypto Lending Platform

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CoinLoan

CoinLoan is a Crypto Lending Platform