Explore how Ethereum revolutionizes industries with smart contracts, DeFi, NFTs, gaming, DAOs, and sustainability, shaping the future of business innovation and blockchain technology.
Vitalik Buterin developed Ethereum in 2014 after taking inspiration from Bitcoin. However, he envisioned an open-source blockchain through which users could access smart contracts and trade cryptocurrency by excluding third parties. The reasons were clear: traditional financial companies risk compromising users’ data and exposing them to cybersecurity threats, which are less likely to occur on the blockchain, where users can maintain anonymity. Decentralization ensures robust maintenance through a network of global nodes and validators.
Since the blockchain offered developers many perspectives and tools, cryptocurrency has also become popular, reaching second place after Bitcoin. Now, you can buy Ethereum with a debit card or credit through Google Pay or Apple Pay, making it highly accessible globally. Hence, one can say Ethereum’s future is bright, especially since the blockchain might become an innovative solution to modern problems. Here’s how.
Ethereum will promote the DeFi market
Decentralized Finance (DeFi) is expected to be the future of the financial industry, as it will merge features of decentralization, transparency and immutability into financial service companies like banks. This will be possible as security protocols, software, and hardware advancements will replace our current outdated systems. The financial sector of the future will ensure high accessibility to all communities, low fees for interest rates and autonomy due to decentralization.
DeFi will be helpful for:
- Liquidity pools;
- Prediction markets;
- Non-fungible tokens;
- Decentralized exchanges;
Developing DeFi apps might seem time-consuming at the moment. Moreover, we’re currently navigating uncertainty in regulations for crypto and blockchain, as well as in security measures, so it might take some time until DeFi apps can be safely used worldwide.
Ethereum will ensure access to smart contracts
Smart contracts are what made Ethereum so demanded by companies. They automatically seal contracts when the parties involved accomplish the predetermined instructions. Therefore, smart contracts could save companies a lot of time and money by employing automation, so there’s no need for third parties to be involved.
Smart contracts can be useful in DeFi, for example, as they can allow fast and easy landing and borrowing. They can also help the supply chain management sector by automating the process of verifying product origin and tracing their history. Due to their benefits of interoperability and scalability, smart contracts can be applied to real estate, healthcare, and every other type of business.
Ethereum will innovate gaming
The gaming industry is one of the most successful ones, being one of the few sectors that flourished during the pandemic and continued growing after. Some of the most recent innovations in gaming include cloud gaming, AI-based development, and Virtual Reality, so it’s constantly changing to meet customer demands and expectations.
Luckily, the Ethereum blockchain has already hopped on the trends, which is why blockchain P2E (play-to-earn) games are now widespread. Axie Infinity, the Sandbox, and Decentraland have already amassed millions of plays worldwide, allowing gamers to earn crypto while playing fun games. Most of these games are already based on the Ethereum blockchain as the network offers developers plenty of tools and mediums, so we expect it to innovate the gaming industry further.
Ethereum will enhance governance through DAOs
In centralized networks, governance is based on a single central entity that makes all the critical decisions and manages businesses. While this system can be efficient because it ensures security and compliance, it can make it difficult for networks to scale and expose organizations to resistance to change.
That’s why many are excited about working through DAOs (decentralized autonomous organizations) on Ethereum. Decisions here are made by multiple individuals, so participants are empowered to contribute to the group’s well-being. At the same time, participants’ votes are visible on the public blockchain, encouraging users to work together in building a safe space for investors and developers.
Ethereum can navigate business sustainability
Business sustainability is the latest industry trend, as companies must keep up with customer demand for green and ethical products. However, there are various challenges along the way, especially when it comes to holding companies accountable for their impact on nature.
That’s where the Ethereum blockchain could help bring more transparency into the business area by tracking how much energy a business consumes and the carbon emissions resulting from various manufacturing or waste management actions. Ethereum is already equipped with such technology that can help assess external information through blockchain oracles. This technology would allow smart contracts to receive and send information on energy reports from the weather, for example.
Ethereum will power up non-fungible tokens
NFTs have been trending for a while as they offer investors new opportunities to expand their portfolios in a fun way. At the same time, the underlying technology allows for tokenizing real-world assets, from parcels of land to vehicles.
The Ethereum blockchain allowed NFTs to grow and flourish, as artists had all the tools necessary to create and share them with communities. But in the future, we expect the blockchain to make it convenient for anyone to mint and trade NFTs, as the number of users that use NFTs is expected to grow to 11.64m by 2025, according to Statista.
Ethereum can ensure self-sovereign identity
Centralized systems expose users to cybersecurity vulnerabilities, leading to identity theft and unauthorized access. Luckily, with Ethereum blockchains, users will be able to store data on the network and choose who they’re sharing it with.
This is called self-sovereign identity (SSI), which uses blockchain technology to make data more private and offer users control over their personal information. However, this would require them to use multiple identity platforms and keep track of their data alone.
Is Ethereum the perfect tool for future business innovation?
The Ethereum blockchain is an advanced network through which developers can learn to create NFTs, dApps, DAOs, and much more. The infrastructure uses smart contracts to deploy anything on the blockchain. Therefore, we expect Ethereum to become the driving force of future decentralization and efficiency. Users on the blockchain can promote DeFi, benefit from DAO governance, and make businesses more sustainable, which will ensure empowerment and high accessibility at the same time.
RELATED TOPICS
- Could Bitcoin Be The Future Of DeFi?
- Is the Blockchain Secure? Yes, and Here’s Why
- Accepting Ethereum (ETH) for Businesses, An Overview
- Exploring the Phenomenal Rise of Ethereum as a Digital Asset
- Ethereum’s Layer 2 Solutions Could Outrun the Main Blockchain
Editor’s Note: The information provided in this article is for informational purposes only and should not be considered financial advice. Please conduct your own research and consult a professional advisor before making any financial decisions, including buying or investing in cryptocurrency.
