5 Main Crypto Use Cases - A Sankore Explainer

Kelly Kigan
March 31, 2022

Crypto is going nowhere and you better acquaint yourself with this new technology now. The practical real-world use cases are viable, and some are live. Some are under development and they promise to revolutionize solutions to habitual problems affecting humanity. There are so many ideas and so many projects using blockchain and crypto technologies. However, in the next couple of years, the chaff will be separated from the wheat. Unsustainable projects will fade away, while viable projects will revolutionize operations in several industries that already record the benefits of crypto. 

Main Use Cases

5 Main Crypto Use Cases

Crypto as an Investment

Though speculative at the moment, one of the major use cases of crypto is investments. Crypto currently is used as a speculative investment and investors have made ungodly amounts of money, while others - the others have walked away with business lessons, and perhaps life’s lessons. The speculative aspect of the investment is what makes crypto outstanding. There is rarely any other product that provides such speculative investments, with longevity as cryptocurrencies. Crypto has existed for some time now, and the trusted coins have not been delisted despite their sporadic nature. Even if for some reason they become delisted from major exchanges, there are other several decentralized exchanges that will accommodate the coins. Crypto provides an exciting speculative investment.

Related: What You Need To Know Before Investing in Crypto

Crypto as a Store of Value

People, who doubt crypto ask how can crypto be a store of value with its volatility? It is true that crypto is sporadic and fluctuates so wildly, and if one is not careful, they can lose a ton of their money. In determining crypto’s store of value, you need to appreciate this new way of storing value on your own, without involving a third party such as a bank. Crypto is independent of institutions and third parties, and completely under your control.

International Money Transfer

If you were a freelancer between 2010 and 2020, you know how international money transfers were a frustrating process. You also probably know about the electronically commercial company that will withhold your money for 180 days because they think Africans are not deserving of American dollars. And let's not get started on the high fees and the extremely slow services. International money transfers involve several intermediaries meaning services will be slow, and you would be better off flying that cash from one continent to another. Crypto is already solving these concerns. There are central authorities in crypto who verify the important stuff such as Know Your Customer (KYC), but all other transactions are done in the background, instantly, and at extremely low costs.

Related: Understanding DeFi

Private - Digital Money

There are digital currencies that are truly private, where users can transact without any intermediaries such as an exchange platform or even without their private details being known to the other party. It is hard to quantify whether this is a good thing for the world or a bad thing that promotes illegal business on the darknet. One thing is for sure, there is no stopping private digital money. 

Read Also: Common Crypto Scams in Africa

Online Payments

The future economy will largely depend on cryptocurrencies. Crypto is fast becoming a popular means for online payments. Anything you can buy with fiat, you can buy with crypto. Since people can access their money full time through crypto, have control over their funds, and make as many transactions as they can without limits imposed by central authorities, crypto will be the preferred option for making online payments. 

Read Also: Web 3.0: The Next Internet Revolution

Recap

The above five practical uses of crypto can only undergo refinement. They have proved their worth and continue to attract more people to crypto. Crypto investments have transformed people’s lives, while international money transfers have made lives easier for people, due to their speeds and low transaction costs. Private digital money ensures the anonymity of parties in a transaction while online payments will give people full control of their money and transactions. 

*Editor’s note

Sankore 2.0 is an Africa-focused community integrating the NEAR blockchain with projects and solutions conceived and built by local developers in Kenya. As noted in the content of this blog, Sankore 2.0 seeks to promote the development of Web3 products in Nairobi — for Kenya and for Africa as a whole.

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