12 real-world blockchain and crypto use cases you should know (2024)

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Decentralized social networks

Social networks powered by blockchain technology offer a decentralized alternative for users , allowing them to share content and interact securely , privately and without invasive surveillance resulting from the centralized power of a company or entity.

Blockchain technology is used to guarantee the security and privacy of data , avoiding censorship and protecting the identity of users.

The Bitwise report highlights the power of the blockchain to give users empowerment over their accounts, content and history on social networks , unlike what currently happens on social networks such as Facebook, Instagram, X or TikTok , where A large company owns the material and can decide to unilaterally remove or block it at any time .

Dollar transfers on the Internet with stablecoins:

The complexities and high costs of transferring money under the traditional financial system are addressed with blockchain technology thanks to stablecoins , which are crypto assets created to be linked to fiat currencies, such as the US dollar or the euro, backed either by fiat reserves and financial assets, over collateralization, among other methods.

Stablecoins give people the ability to make fast and secure money transfers over the Internet, without the barriers and costs associated with traditional money transfer systems, also eliminating the need for centralized intermediaries.

Additionally, stablecoins can also be used to pay for goods and services online , opening up new possibilities for e-commerce.

The report values the use of stablecoins linked to the dollar particularly in economies with economic uncertainty as occurs in Latin American countries, such as Argentina and Venezuela, and others in the world such as Turkey.

Stablecoins such as Tether (USDT), USD Coin (USDC), Binance USD (BUSD) or DAI (DAI) , can facilitate the safekeeping of value for people, as a way to protect themselves against inflation or loss of purchasing power , while they also facilitate money transfers between people quickly and economically.

The potential of stablecoins for payments and the digital economy was a key point for the digital payments giant, PayPal, to decide to launch its own stablecoins, PYLUSD .

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Decentralized and optimized digital maps in real time:

A use case for blockchain technology highlighted by the Bitwise team is the creation of online maps updated in real time and decentralized , which are community-driven thanks to the technology.

In this sense, decentralized digital maps are maps of the world that are stored in a decentralized database and are updated in real time thanks to the collaboration of users.

This allows greater precision and reliability in the representation of geographic information , due to the ability to update map information in real time , something that with traditional systems such as Google Maps, Apple Maps or Bing Maps requires a greater time interval and physical and economic resources to achieve.

Another point where blockchain technology stands out for the development of decentralized maps is in the privacy and management of user data , since in traditional map systems locations are often tracked and user data is accumulated.

Hivemapper enables the construction of decentralized map networks through the Solana blockchain , and as the report mentions, it works with a system where users can contribute high-resolution images of the streets , receiving the HONEY token as an incentive.

New customer reward models:

One of the most prominent use cases for blockchain technology is its integration into customer reward systems and programs.

With blockchain, companies can create more efficient and transparent loyalty and rewards programs, thanks to tokens or NFTs with utility for customers such as access to products, services, activities or special benefits for their loyalty to the brand or company.

The use of smart contracts opens a new universe of possibilities after the programmability of reward models for customers , allowing the delivery of rewards to be automated and improving the customer experience in general.

Brands can take advantage of blockchain to build new digital ways to interact and build loyalty with their customers , such as encouraging interaction, purchases or other types of participation with brands.

Multiple brands have already shown the potential of the technology to explore new rewards for their customers, as is the case with Starbucks and its Web3 rewards program, Odyssey , which uses NFTs issued on the Polygon blockchain.

Other companies such as the airline Etihad Airways are also providing benefits with NFT and blockchain technology for their customers.

Automation of financial services with DeFi:

Decentralized finance or DeFi has arrived to bring a new layer of financial services powered by blockchain and smart contracts , allowing users to trust code over trusting people.

Bitwise highlights the work of decentralized platforms, such as Uniswap, for providing access to a new range of automated financial services , without dependence on a centralized entity, in a transparent and more economical way.

DeFi is a more inclusive alternative to traditional finance and services, currently enabling billions of dollars in financial services.

Without a doubt, decentralized finance is one of the most relevant and prominent use cases of blockchain technology .

Distribution of music royalties with NFTs:

Making their way into the arts and creative industries, NFTs are a gateway for artists, musicians, and creators within the blockchain space .

NFTs are unique tokens used to represent exclusive digital assets , such as artwork, digital collectibles or music, unlocking a range of benefits and utility for fans beyond commercial or speculative appeal.

In the world of music, NFTs open up new possibilities for royalty distribution , allowing artists to receive fair compensation for their work or also offering artists access to royalties from their musical work for their most loyal and committed fans . .

This allows for a fairer and more transparent distribution of music royalties .

Musicians can create NFTs that represent or benefit from offering a percentage of a song’s copyright and sell them directly to fans.

This was the case of the music superstar Rihanna, whose producer Deputy, in partnership with the AnotherBlock platform, sold a total of 300 NFTs for her fans that granted a percentage of the royalties generated by the streaming of one of her most popular songs: “Bitch “Better Have My Money . ”

Global transactions and micropayments with Bitcoin:

Making money transfers and micropayments globally can be expensive through traditional financial systems and banking transactions, so having an alternative like Bitcoin can alleviate not only costs , but also the immediacy and transparency of operations.

Bitcoin allows global transactions to be made without the need for traditional financial intermediaries, and for a much lower cost than an international bank transfer, being completed in minutes, instead of hours or days.

Especially for companies that carry out work and hire international staff, as Bitwise explains, the Bitcoin option is much more convenient and secure when it comes to paying fees or making micropayments for specific project work.

Without a doubt, Bitcoin and cryptocurrencies are real and current options for thousands of workers in the world as an alternative for sending remittances and payments, especially for independent workers or freelancers , who unlock access to new markets with the security that they will be able to receive your payments without suffering the high financial cost of covering bank or payment platform fees.

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Digital fashion boost:

Numerous brands in the world, many of them among the largest that exist, take advantage of the capacity of blockchain technology and NFTs to offer digital items and pieces inspired by digital art, their identity or products and services, which promote the idea of digital fashion online or for virtual worlds.

Luxury brands, such as Gucci, Louis Vuitton or Rolex, have already explored the use of NFT digital collections to offer new digital fashion experiences for their customers , in an effort to expand their reach in the marketing of items such as shoes, clothing and accessories. beyond physical space.

The sports apparel giant, Nike, has become a leading brand in terms of sales of NFT digital items, as part of a Web3 strategy with which it already places its digital collectibles on virtual platforms and video games, such as the giant’s titles. EA Sports .

However, the application or use of blockchain technology in the fashion industry goes beyond digital collectibles , since due to their characteristics, blockchains have also proven to be a valid technology to fight against product counterfeiting. , track the supply chain and protect intellectual property of designs.

Decentralized and cooperative governance with DAOs:

Decentralized Autonomous Organizations , known by their acronym DAO, allow the emergence of a decentralized governance model driven by blockchain technology , with tokens and smart contracts.

DAOs are digital entities that operate through smart contracts and allow participants to make decisions in a democratic and transparent manner , a transformative digital cooperative that can be used for fund management, project decision-making and conflict resolution.

The example of ConstitutionDAO was mentioned in the report as a real way in which DAOs manage to bring together a community of people around a common goal , aligned under the grace of blockchains to form a powerfully digital native cooperative.

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However, the popularity of DAOs encompasses multiple use cases , ranging from the governance of crypto and blockchain projects, to forming pools for investment, project financing, collectors, media, and other inventive forms of governance.

Web3 Decentralized Domain Names:

The evolution of domain names is being driven by blockchain technology.

Decentralized domains with blockchain , in addition to changing complex domain names, such as websites, decentralized domains also eliminate the visual difficulties behind cryptographic addresses , by providing access to simple names such as Criptotendencias.eth , registered in a chain of blocks, to connect them with wallets, personal websites or emails, among other uses.

This means that, instead of relying on centralized domain registrars, blockchain technology allows the creation of domain names that are directly owned and controlled by users, positioning itself as a form of digital identity adapted to the evolution of the Internet towards Web3 .

In addition, decentralized domain names are more secure and resistant to censorship , since they do not depend on any central authority, but on public blockchains that offer transparency in operations.

Projects such as Ethereum development on Ethereum Name Service (ENS) or Unstoppable Domains are helping to register hundreds of thousands of decentralized domain names, which can be purchased with cryptocurrencies or fiat currencies for a period determined by the user.

Digital property for video games:

With blockchain technology, players can have real ownership and control of digital objects and assets in video games , a highlight that so-called blockchain or Web3 games have brought, but which can also be implemented in well-known titles in the industry. .

This means that the virtual items that players acquire, such as characters, weapons or digital goods , can be unique, scarce and transferable, thanks to the use of NFTs.

Digital property can also be used to create token-driven virtual in-game economies, where players can buy, sell and exchange digital objects.

Today, Web3 games and blockchain-powered metaverses are two real use cases for how the technology, thanks to NFT token and smart contracts, can optimize the digital ownership of video game assets.

Emerging store of value with Bitcoin:

One of the main premises of Bitcoin is its ability to act as a haven of value during times of economic or political uncertainty , both locally within a country and internationally due to geopolitical conflicts or global macroeconomic problems.

Bitcoin has currently matured as an asset to the point of positioning itself as an alternative store of value considered by many even superior to gold , due to its decentralization, scarcity and resistance to censorship, added to its digital nativity and sovereignty.

Bitwise highlighted the use of Bitcoin as a store of value as a growing trend that could move towards “mainstream” in the future.

As more people adopt Bitcoin and use it as a form of investment and savings, its demand and value tend to increase, making it considered a viable option to protect and increase wealth in the long term.