Initially, some critics dismissed the entire crypto industry as a big bubble with no real-world impact. However, the ecosystem built to disrupt finance has seen immense growth in real-world applications. In this article, we highlight some of the most popular crypto use cases in the real world.
Here are some of the top sectors where crypto’s disruption can be seen and some of the projects making this possible.
Cryptocurrencies are changing the way payments are made. Before crypto, global remittance was not efficient. Few platforms worked or were fast enough. Further, these platforms were expensive, making them unattractive in developing markets.
Cryptocurrencies are solving this issue by creating a financial ecosystem accessible to all. Anyone with a device and internet connection can create a crypto wallet to receive or send money. What’s more, using cryptocurrencies is a less expensive option for remittance.
Bitcoin (BTC) and USDT (and other stablecoins) are popular methods of payment globally. Besides being the first and most popular crypto, bitcoin has several fiat-on ramps, allowing quick transfer from fiat to BTC. Stablecoins, on the other hand, are popular because they maintain their value and are not affected by crypto volatility.
Decentralized Finance (DeFi)
Even though DeFi has become popular only recently, the decentralized finance ecosystem is another important aspect of crypto’s real-world contributions. DeFi has given global access to financial products and activities in a decentralized manner.
Lending and borrowing is a hot DeFi use case. Centralized financial institutions have several requirements for getting loans and smaller returns for the lender. DeFi platforms like PoolTogether, Argent, and Dharma are changing the way we lend money and how it is borrowed.
For instance, Compound is at the heart of several DeFi lending and borrowing applications. Compound matches borrowers and lenders automatically and determines interest based on the ratio of borrowed to supplied assets.
Another real-world application of DeFi is prediction markets where decentralized projects like Augur create a crowdsource indicator of the possible turn of events.
Savings, insurance, and derivative markets have also seen an upgrade due to the growth of crypto and DeFi.
As the crypto ecosystem evolves towards providing more value to the masses, real-world use cases are set to be on the rise.