Most cryptocurrencies are built on blockchain. It is a technology for funds transfer and data storage. This technology offers a decentralized, distributed, and digital ledger for all transactions, eliminating the need for intermediaries. No wonder cryptocurrencies are an exciting invention. They are an incredible innovation in the finance sector, and their usefulness extends beyond money transfers. This article shares 13 cryptocurrency uses you probably haven’t heard of yet.
1. Curb election fraud
Blockchain, crypto’s underlying technology, can eradicate election fraud. Some countries have already designed an online voting system that uses this technology. Its decentralized nature allows everyone in the system to see all activities conducted. No one can change or edit what was entered. Transparency is assured, and election fraud is totally eliminated.
2. Identity management
The technology behind cryptocurrencies aims to improve things. One of these is an identity management system. The main goal of identity management is security. Through blockchain, personal data can be stored more securely in a distributed system. Organizations, such as Iota, have already adopted this system.
3. Digital publishing and advertising
Blockchain is also used in digital publishing and advertising. Marketing companies like NeoReach and Viral Nation are perfect examples. Authors and writers who publish on a blockchain-based platform receive unique ID stamps—protecting the rights to their work.
4. Supply chain tracking
The supply chain involves a lot of paperwork to monitor the process. Blockchain technology eliminates this tedious process. It becomes easy to monitor items and identify areas of inefficiency within the chain.
5. Transparent business operations
Because cryptocurrency transactions are easy to track, transparency is sure in business operations. As a result, unethical practices are entirely discouraged.
6. Reaching unbanked citizens
The worldwide web continues to expand, reaching rural communities and politically unstable regions where many are unbanked. Even though these places use more fiat cash, the number of people with mobile phones is increasing. As a result, banks offer electronic (mobile) wallets in such areas to enable them to participate in the country’s finance sector.
7. Can be backed by a fiat currency
Tether Stablecoin was created to be the most stable cryptocurrency. Its goal is to stabilize the cryptocurrency market, ridding it of its extreme volatility. Stablecoin is pegged to the US dollar and regulated by a financial body.
8. Can be used to dodge losses when the crypto price drops
The Stablecoin-Tether, as mentioned, was created to remove crypto market volatility. Many traders exchange their bitcoin (or altcoin) for this crypto when there is a sudden price drop. The trader can quickly switch between coins to avoid losing money.
9. Eliminate corruption in charities
Cryptocurrencies’ ability to ensure accountability makes them a great tool for removing corruption in charity organizations. That is why the World Food Programme (WFP) has adopted blockchain for the secure and transparent distribution of cash to the less privileged.
10. Easy access to funds during travel
Accessing a cryptocurrency wallet is easy anywhere in the world. It enables seamless travel transactions at a low cost. Several travel websites, including CheapAir, TravelbyBit, Berkeley Travel, and more, accept payments in cryptocurrencies.
11. Higher education
Universities in Europe, the UK, and the US accept cryptocurrency payments. These schools include Princeton, the University of Cumbria, the University of Nicosia, etc. As crypto popularity grows, more schools will join this category.
12. Passive income generator
Many people have built good passive income through cryptocurrencies. Mining and affiliate marketing are common ways to do this. Some people also stake their coins and receive continuous rewards.
13. Non-cash remittances
Another great crypto use is making non-cash remittances to relatives abroad. Several blockchain startups exist that facilitate such transfers. SureRemit is one of them. They provide a platform that allows users to make non-cash remittances from anywhere in the world.
Cryptocurrency and blockchain offer many unique uses. Transactions or activities using cryptocurrency eliminates the problem associated with a paper trail. This is one of the main reasons why its acceptance rate keeps growing. However, cryptocurrencies are not without drawbacks. Below, we list a few of them:
During the early days of its inception, several companies fell victim to hackers and had to file for bankruptcy. Though the blockchain system is secure, scammers and hackers can steal your token if they get a hold of the private key.
2. Mining is difficult
Mining cryptocurrencies is not for everyone. It is a complex process and requires higher technical and mathematical knowledge. Therefore, not everyone can benefit from crypto through this process. Investing, trading, or using digital currencies are other ways to partake in the system.
3. Crypto investments carry enormous risks
Cryptocurrencies are an incredible innovation in payment. However, they have not proven themselves worthy investment assets in the financial market. Many have lost a fortune in the current downtrend market. Although many more still have hope that the asset class will regain and increase in value.
4. Cryptocurrencies need time and commitment to understanding them.
Cryptocurrencies are complex. Not everyone can quickly grasp what they’re all about at first glance. It is not a problem if you only want to use them as payment. But if you wish to trade, invest, or use them for other purposes, you must be patient to learn about them thoroughly.
Everything has a good and a bad side. Luckily for the world, cryptocurrencies’ goods far outweigh their drawbacks. Their disadvantages are also manageable. That is why blockchain and cryptocurrencies are here to stay. This technology is revolutionizing not only finance but also the world. Other uses and benefits of blockchain are being discovered. The world is excited about the future.