Have you ever heard of Ethereum? If you have, you might have wondered what you can do with it, to earn more money or have fun with it (if that is the case).
The cryptocurrency has also birthed several other tokens and technologies that have aided in finance and other sectors. For example, we have Rave, SHIBA, Arbitrum, Optimism, and lots of other technologies.
Also read: Crypto staking advice every beginner must know!
Ethereum is one of the world’s most famous cryptocurrencies. It is responsible for most of the innovations we know and enjoys today, including Web3, NFTs, and many airdrops. As a result, Ethereum has become a significant player in the cryptocurrency market, with a market capitalization of over $400 billion as of 2021.
You can perform several financial and personal activities with Ethereum, both as cryptocurrency and a platform -and we’ll explore them all here.
These activities range from investing in DeFi to buying NFTs, staking your Ethereum, participating in DAOs, etc. There are also mining activities, legislation in DAOs, holding ETH as an investment, and so on.
Ethereum offers a wide range of use cases and applications. So, let’s dive in and explore the possibilities of Ethereum in 2023.
Ethereum–A Deeper Dive
Ethereum is a blockchain-based platform that allows developers to create and run decentralized applications (also known as “dapps”). Vitalik Buterin created it in 2014 to expand the capabilities of Bitcoin’s blockchain, primarily used for financial transactions.
ETH is quite different from BTC in a few ways. Firstly, it uses a programming language called Solidity, which allows developers to write “smart contracts” – self-executing contracts that automatically enforce the terms agreed upon by both parties.
Hence, it is possible to create decentralized applications that can handle complex user interactions and automate certain processes. However, Ethereum is more than just a way to send and receive money – it’s a platform for creating applications that can run on the blockchain.
Also read: Top Penny Cryptocurrencies To Buy.
One of the coolest things about Ethereum is that it lets developers create “smart contracts.” These are like computer programs that automatically execute when certain conditions are met.
For example, if you and I wanted to make a bet on something, we could create a smart contract that automatically pays out the winner based on the outcome of the bet.
We wouldn’t need to trust each other because the contract would enforce our agreed terms. In summary, the smart contract acts like a third party, a mediator, or a middleman.
Another thing that sets Ethereum apart from Bitcoin is its Ether (ETH) cryptocurrency. You can use it to pay for transactions on the Ethereum network. As a user, you can also use it as an incentive to help maintain the network. This happens through a process known as mining.
Blockchain–The technology behind ETH
The blockchain is a method of keeping track of information in a secure and decentralized way. Instead of one central authority (like a bank) keeping track of everything, many computers worldwide work together to ensure that transactions are recorded and verified.
Each “block” in the chain contains a batch of transactions, and each block is linked to the previous one using cryptography. This means that once a block has been added to the chain, Third parties can only alter it by altering every subsequent block, making tampering with the data extremely difficult (if not impossible).
The beauty of blockchain technology is that it enables trust between parties who don’t necessarily know or trust each other. Furthermore, because every transaction is recorded in a transparent and immutable way, anyone can audit the blockchain and verify that everything is working as it should be.
While blockchain was originally developed as the underlying technology behind cryptocurrencies like ETH, BTC, LTC, and XRP, it has since been adapted for various applications, from supply chain management to voting systems to decentralized finance (DeFi) applications.
How to buy Ethereum?
Before we dive into the use cases of ethereum in 2023, let’s discuss briefly on how you can buy Ethereum. The truth is, you can buy Ethereum online on your preferred cryptocurrency exchange, provided they sell. That’s why you need to do your research to know if the cryptocurrency exchange you have in mind sells ETH.
Once you identify a cryptocurrency exchange, you’d usually complete registration with them, and fund your wallet.
Each cryptocurrency exchange has different means of payment. Discover what works for your chosen platform, and proceed to purchase ETH. Here you go. You’re now the latest owner of ETH. Calls for celebration.
What 10 Things Can You Do With Ethereum in 2023?
For newbies and other individuals just getting into Ethereum in 2023, there are several things you can do with your coins. Let’s examine some of them and how you can benefit.
1. Invest in DeFi
Decentralized finance has emerged as one of the most significant use cases for Ethereum. You can use your Ethereum to invest in various DeFi protocols like lending platforms, liquidity pools, yield farming, and automated market makers (AMMs). These platforms offer leverage on your money and allow you to earn.
2. Stake your Ethereum
Staking Ethereum involves holding the cryptocurrency to support the blockchain network and earning rewards. To stake Ethereum, you must set up a staking wallet, deposit Ethereum, choose a validator, and wait for confirmation. Once confirmed, you can start earning rewards.
Staking Ethereum is an excellent way to support the network and earn rewards, and it will become more accessible as Ethereum 2.0 progresses.
Ethereum is moving towards a proof-of-stake consensus mechanism, meaning you can earn rewards by staking your Ethereum. In 2023, you can earn around 5-10% APY by staking your Ethereum.
3. Buy NFTs
Non-fungible tokens (NFTs) have gained immense popularity in recent years. You can buy NFTs like digital art, collectibles, and game items. Several people have profited from flipping, trading, or creating NFTs on the Ethereum blockchain.
This process has led to the adoption of NFTs and Web3 on several blockchains, and user demands have increased. Some projects even airdrop tokens to people holding or holding their NFTs.
4. Participate in DAOs
Decentralized autonomous organizations (DAOs) allow you to participate in the decision-making and governance of projects. You can vote and earn rewards for your contributions.
For example, Arbitrum released $ARB tokens to people who have traded on its chain. The tokens can be used to vote or perform other consensual activities.
5. Pay for goods and services.
As more merchants accept cryptocurrencies, you can expect to use your Ethereum to pay for goods and services in 2023. You can also use Ethereum-based payment solutions like TAP or OMG Network to pay for transactions at a lower fee.
Several business owners have incorporated the use of ETH in daily trades. For example, Bored and Hungry in NYC receives payment in ETH from its customers. This business exemplifies what you can do with your ETH tokens.
6. Lend your Ethereum.
You can lend your Ethereum to borrowers on DeFi platforms and earn interest on your loans. This decade has brought about new technology and innovations, including creating flash loans, crypto arbitrage, etc.
In addition, you can request loans from various lending platforms and stake your tokens or NFTs in a cryptovault to serve as liquidity for a decentralized loaning service. One exciting thing about all these is that, unlike traditional banks, you always get your money back.
7. Provide liquidity
Liquidity providers play a vital role in DeFi ecosystems. You can earn a share of the trading fees by providing liquidity to AMMs like Uniswap or Sushiswap.
Providing liquidity to platforms and DApps on the Ethereum Blockchain comes with its share of benefits -including delegate status, legislative status, OG status, and others.
8. Play blockchain-based games
In 2023, you can expect to see more blockchain-based games that use Ethereum as their native currency. You can use your Ethereum to buy in-game items or trade with other players.
Playing games also earns you some set of NFTs, tokens, etc. You can’t go wrong with Blockchain-based games.
9. Donate to charity
Many charities now accept cryptocurrencies as donations. As a result, you can use your Ethereum to support various causes and positively impact society. Some platforms allow their members or participants to donate to charity via crypto, specifically ETH tokens.
10. Develop on Ethereum
You can use Ethereum to build various blockchain-based applications and services if you’re a developer. With the rise of Web3 and decentralized applications, you can expect more demand for Ethereum developers in the coming years. Recently, some DApps allowed their users even to purchase an NFT via Goerli ETH tokens, and it resulted in the purchase of a BAYC NFT.
Other activities include mining, portfolio management, and so on. You can even run an Ethereum exchange platform for individuals to purchase tokens from you as needed.
You can use your ETH to do several other things, including using it as an investment, staking, and trading; the possibilities are limitless.
Ethereum–Wide range of Use Cases
There you have it. ETH is a gift that keeps giving, especially with the various options you can choose from. As mentioned, Ethereum is a versatile cryptocurrency with numerous use cases and applications.
In 2023, you can expect to see more innovative use cases and applications to emerge, making Ethereum a valuable asset. Whether you’re an investor, trader, gamer, or developer, Ethereum offers something for everyone. So go forth and explore, and who knows, you might stumble upon the next big thing in the crypto world.