{"id":8720,"date":"2022-09-29T09:06:26","date_gmt":"2022-09-29T09:06:26","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=8720"},"modified":"2022-09-29T09:06:26","modified_gmt":"2022-09-29T09:06:26","slug":"smart-contract-use-cases","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/09\/29\/smart-contract-use-cases\/","title":{"rendered":"Smart Contract Use Cases"},"content":{"rendered":"\n<p>Ethereum\u2019s Turing Complete design means that anyone can write a Smart Contract, there is no submission or vetting process. Smart Contracts can create their own rules and ownership structures. Given that Ethereum also supports token standards, it is a blank canvas for new permissionless methods of generating and exchanging value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><br>Currencies &amp; Token Systems<\/h3>\n\n\n\n<p>The inclusion of token standards was a masterstroke by Ethereum\u2019s founder, Vitalik Buterin, because it allowed these new digital applications (dApps) the freedom to build their own mini-economies, with tokens for exchanging and creating value, as well seamlessly integrating with other applications through Smart Contracts &#8211; a concept called composability.<\/p>\n\n\n\n<p>The most common Ethereum token standard is ERC-20. This set of guidelines allows developers to build applications with a unique token, which is interoperable with other products and services.<\/p>\n\n\n\n<p>The ERC-20 standard specifically relates to fungible tokens within Ethereum and provides an API for tokens within Smart Contracts providing the following standard functions:<\/p>\n\n\n\n<ul><li>transfer tokens from one account to another<\/li><li>get the current token balance of an account<\/li><li>get the total supply of the token available on the network<\/li><li>approve whether an amount of token from an account can be spent by a third-party account<\/li><\/ul>\n\n\n\n<p>With a few extra lines of Smart Contract code, you can determine the supply, distribution and additional utility of a new fungible token. This ability opened the floodgate for alternative token systems to Ethereum and Bitcoin, commonly known as alternative coins (altcoins), and cryptocurrencies that are pegged to fiat currencies &#8211; Stablecoins &#8211; making them more appealing to traders and businesses.<\/p>\n\n\n\n<p>There is also a standard for tokens that aren\u2019t designed for exchange &#8211; non-fungible tokens (NFTs) &#8211; which Smart Contracts can apply to create in-game economies where users take ownership of what they create and earn within games, freely trading them outside of the game.&nbsp;<\/p>\n\n\n\n<p>Play-to-earn is one of the fastest-growing areas of the Ethereum ecosystem, with\u00a0Axie Infinity\u00a0one of the most popular applications. It uses Ethereum\u2019s Smart Contract capability to:<\/p>\n\n\n\n<ul><li>Create a token for trading within the game<\/li><li>Collect, breed and battle NFT based creatures called Axies<\/li><li>Allow players to have stake in the game through a governance token &#8211; SLP<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/mdr.foobrdigital.com\/wp-content\/uploads\/2022\/09\/images-2-1.png\" alt=\"\" class=\"wp-image-8722\"\/><\/figure>\n\n\n\n<p>Decentralised Finance<\/p>\n\n\n\n<p>Combining Smart Contract capability with a common standard for exchanging value enabled the emergence of a new phenomenon known as DEFI (Decentralised Finance). In simple terms, DEFI uses Smart Contracts to offer financial services to the External Account holders of Ethereum and other ERC-20 tokens.<\/p>\n\n\n\n<p>Saving &amp; Loans &#8211; Protocols like\u00a0Compound\u00a0use Smart Contracts to algorithmically offer interest on deposits and lend out funds against collateral. Compound alone has over $10bn in Ethereum based assets earning interest.<\/p>\n\n\n\n<p>Decentralised Exchanges &#8211; Smart Contracts enable Automated Market Making &#8211; automatically providing liquid pools of tradable asset pairs without any central process or oversight. A DEX will incentivise users to provide liquidity (LPs) and then use algorithms to provide constant pricing and balanced liquidity pools.<\/p>\n\n\n\n<p>DEX\u2019s can also offer the same kind of complex derivatives trading offered by centralised exchanges but with much greater freedom, control and access to liquidity.\u00a0dYdX\u00a0and\u00a0Uniswap\u00a0are two of the most popular decentralised exchanges.<\/p>\n\n\n\n<p>Yield Aggregation &#8211; Given the explosive growth in opportunities to generate a return from DEFI protocols, Smart Contract-based services will find the best strategies to optimise return, also known as Yield Farming.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum\u2019s Turing Complete design means that anyone can write a Smart Contract, there is no submission or vetting process. Smart Contracts can create their own rules and ownership structures. Given that Ethereum also supports token standards, it is a blank canvas for new permissionless methods of generating and exchanging value. Currencies &amp; Token Systems The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[316],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8720"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=8720"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/8720\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=8720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=8720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=8720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}