In recent times, crypto projects are creating quite a ripple in the market. Ethereum is the second largest crypto, after Bitcoin, in terms of market cap. It hosts initial coin offerings or ICOs, dApps, DeFi protocols, as well as NFTs. In this article we examine the different types of crypto projects based on Ethereum so you know what kind might work for you.
Introduction to crypto projects based on Ethereum
Ethereum-based crypto projects are essentially blockchain projects built on the Ethereum network. Being blockchain projects, they manage their data in a decentralized manner—meaning without the involvement of a centralized authority or thirty party. Ethereum and its projects are open source, so anyone can use them and they are developed collaboratively.
Understanding the basics of Ethereum-based crypto projects
Ethereum-based crypto projects use blockchain technology and they run on the Ethereum network. The blockchain hosts a variety of applications and projects that usually involve the exchange of crypto tokens. The tokens are used to purchase tangible products and goods.
How Ethereum enables the development of decentralized applications (dApps)
Decentralized applications, or dApps, are blockchain-based applications. The Ethereum Virtual Machine helps Ethereum improve its consumer experience and monetize through the creation of dApps. The dApps on Ethereum benefit from its vast developer community.
The potential of Ethereum-based crypto projects to disrupt a variety of industries
Like all blockchains, Ethereum could disrupt and have a positive impact on a variety of industries—from the medical industry to supply chain management. (You could read all about it here.) Especially so with Ethereum and blockchain-based industries. The Merge, Ethereum’s upgrade to adopt the PoS way of verifying transactions, will also have a vast impact on all crypto-specific industries that depend on Ethereum.
Decentralized Finance (DeFi) projects
One of the many industries that the Ethereum blockchain is used in is Decentralized Finance, better known as DeFi. Ethereum’s blockchain is one of the key tools developers of DeFi projects use to democratize financial services. But what exactly is DeFi?
Understanding the basics of DeFi and its potential impact
DeFi is the latest financial technology in the market. It involves blockchain-based peer-to-peer transactions and challenges traditional finance. This type of financial technology eliminates the fee one needs to pay while using centralized services, like banks. In that sense, DeFi is essentially a way to decentralize financial services. Ethereum is one of the most important blockchains DeFi relies on.
Some popular DeFi projects built on Ethereum are Uniswap, Compound, and Aave. Read about them below.
- Uniswap is the original Decentralized Exchange Protocol or DEX. Recently, it released its v3, which helps concentrate liquidity.
- Aave is a decentralized lending protocol. Launched in 2017, this lending protocol offers ETH as a lending token.
- Compound is an algorithmic project. Consisting of a series of decentralized interest rate markets, it allows users to supply and borrow ETH tokens at variable interest rates.
How DeFi projects are democratizing access to financial services
In centralized financial services, the service providers hold complete control over the data and process. But in decentralized finance projects, the financial service wholly relies upon the peer-to-peer transaction. This helps to democratize access to financial services. Anyone can set up an account and participate in these projects without much paperwork.
Non-Fungible Token (NFT) projects
Non-Fungible Tokens, or NFTs, are an advanced type of digital token. They run on a blockchain. NFTs are different from fungible tokens like Ethereum and Bitcoin. Fungibility means that a token can be changed with a similar one. NFTs, on the other hand, are one of a kind/unique.
Understanding the basics of NFTs and their potential use cases
NFTs are unique cryptographic tokens that exist on a blockchain. They are special because they cannot be replicated. Their unique cryptographic hash makes it so.
These tokens can be useful in a variety of ways. Some common use case of NFT projects are fashion, art, sports, collectibles, and licensing and certification.
Popular NFT projects on Ethereum
Ethereum thus hosts a wide variety of NFT projects. Here is a list of some of the more popular ones:
- Bored Ape Yacht Club
- Cool Cats
- Mutant Ape Yacht Club
How NFT projects are revolutionizing the digital collectibles and gaming industry
The rarity and scarcity of the digital assets created by NFT are helping revolutionize the digital collectibles market and the gaming industry. In addition, NFTs help collectibles such as CryptoKitties create unique collectibles, so there is a commonality between the two industries. Gamers can also trade or change digital assets, which was impossible in the past. Finally, digital assets are safer due to the unique cryptographic hashing of NFTs.
Supply chain management projects
Blockchain technology is widely used in various industries, and supply chain management is no exception. Today, many supply chains use blockchain technology to organize and manage their workforces better.
Understanding the potential of blockchain technology in supply chain management
Using blockchain technology brings various benefits to the supply chain industry. Blockchains help deliver products faster and cost-effectively while enhancing traceability and coordination between partners. It also reduces administrative costs and grey and counterfeiting losses and increases transparency and market visibility.
Popular supply chain management projects on Ethereum
VeChain is a popular Ethereum-based platform. It helps streamline supply chain processes and information. Emerson, IBM, and Mastercard are all experimenting with the technology to solve their supply challenges.
How Ethereum-based supply chain management projects are improving transparency and efficiency
The Ethereum blockchain helps with supply chain management in some key ways. It, as mentioned earlier, helps companies track objects, coordinate better, and improve overall efficiency. Therefore, it helps to bring more transparency and efficiency.
Gaming and virtual reality projects
Today gaming and virtual reality projects are witnessing a massive boost due to the incorporation of blockchain technology. Blockchains, especially Ethereum, have a vital role in such projects, especially by making Play-to-Earn a reality and monetizing in-game assets.
Understanding the potential of blockchain technology in gaming and virtual reality
Blockchain technology is bringing multiple changes to the gaming and virtual reality industries. They help enhance security, create integrated gaming accounts, secure and transparent transactions, verification, and improve user experiences.
Popular gaming and virtual reality projects built on Ethereum
Some of the more popular gaming and virtual reality projects associated with Ethereum are:
- Axie Infinity
- Beyond Earth Online
How Ethereum-based gaming and virtual reality projects are creating new opportunities for players and developers
In Ethereum-based gaming, players can earn through gaming and entering virtual worlds. Developers also earn every time an NFT changes hands. In addition, players can exchange or trade digital assets in Ethereum-based games.
The future of Ethereum-based crypto projects
Ethereum and other cryptos have challenges as well as a bright future ahead of them. To know more, read on.
Advancements in Ethereum technology and their impact on crypto projects
The Ethereum ecosystem recently witnessed a significant advance with the arrival of Ethereum 2.0. The post-Merge Ethereum will take crypto projects based on it a long way as transactions speed up and gas fees eventually drop.
In addition, there is Ethereum layer 2 projects. These are basically projects that run on Ethereum and help it scale. These, too, have improved the ecosystem a lot.
Government regulations and legal framework
Government regulations naturally vary from one country/state to the next. For example, Ethereum is legal in the United States, while it is restricted in China. The future of the network depends on the stance taken by the majority.
Ethereum 2.0 and its impact on crypto projects
As projects have adopted blockchain technology, the Ethereum 2.0 advancement is bound to impact the crypto industry. Ethereum 2.0 has helped crypto projects grow their outreach, lower transaction fees, and enhance safety and security features.
The emergence of new use cases and solutions in various industries
Emerging Ethereum applications include real estate, healthcare, and entertainment. In the music and entertainment industry especially, Ethereum can play a key role by providing excellent royalty solutions.
Crypto projects are growing day by day, especially on Ethereum. As Ethereum becomes more scalable, it will continue supporting the development of various industries.