3 Main uses for Smart Ethereum contracts


What makes Ethereum an advantage over the dominant cryptocurrency Bitcoin is its implementation of smart contracts, which allows developers to run decentralized applications, or anywhere, directly on the Ethereum blockchain. Although the possibilities for smart contracts are almost endless, some dominant cases have emerged.

  Ethereum Smart Contracts

Screenshot from dappradar.com, showing the 10 most popular Ethereum smart contract applications by number of active daily users [19659004] 1: Distributed Exchanges

With traditional cryptocurrency exchanges, a user must deposit their funds for exchanges. This requires that the exchange act as a reliable custodian of these funds. However, with several major exchanges that have suffered from hacks, many investors are wary of depositing large amounts of cryptocurrency into trades that may not be trusted custodians.

The decentralized exchanges completely mitigate the problem of custodians. Rather than trusting an exchange as a custodian, a user can simply send his or her funds to an intelligent contract address, which gives the user and only control of the user on their funds. All operations are performed directly on the Ethereum blockchain, which ensures that the user always has full control over his exchange balance sheets.

2: Games and collectibles

Within this category, the most popular example is CryptoKitties, which is essentially a Tamagotchi Pet based on Blockchain. Users can buy, sell and breed these digital kittens, some of which can become quite precious.

Although these types of applications may seem silly, they were a great way to introduce people to cryptocurrency and anywhere. At its peak, CryptoKitties had over 14,000 users every day, shrinking everyone else.

3: Gambling

Although in the same vein as games and collectibles, gambling games have a long and unique history. One of the first major on-chain gaming applications, SatoshiDice, was launched by ShapeShift CEO Erik Voorhees and eventually sold for nearly $ 11.5 million in July 2013. The excitement for such gaming platforms is reflected in the fact that at its peak SatoshiDice accounted for almost half of all Bitcoin transactions.

Although SatoshiDice mainly present simple games, some of the more modern gaming applications have a humorous touch. For example, Fomo3D makes fun of the lack of transparency in the ICO market by putting users in the position of an ICO developer who escapes from madness.


Although many of these use cases seem trivial, the excitement for Ethereum and similar intelligent contract platforms remain strong. ICO continue to raise millions of dollars to develop intelligent contract applications and Block.one recently closed a $ 4 billion ICO for the intelligent development EOS platform.

For more news and updates on cryptocurrencies, visit our bitcoin category. [19659016] [ad_2]
Source link