What is Ethereum?
Ethereum is a network of computers operating as nodes which validate transaction records. Each participating node is rewarded with ETH. Unlike Bitcoin, Ethereum allows for automatic rules to be established to facilitate these transactions. This is done with programs, known as smart contracts, which are stored in the network’s own records and are executed on a virtual machine called the Ethereum Virtual Machine (EVM). This way, all kinds of applications distributed on this network can be created, managing assets and conducting transactions without being controlled by a central authority. Hence, a wide variety of processes can start running without prompting as soon as conditions are met. These programs, called smart contracts, are self-operating. This allows for the execution of a broad spectrum of Ethereum use cases.
In 2014, we began auditing projects written in Solidity for various applications, mostly financial operations. At first, we did it manually, but after some time, more complex analysis tools were added to assist with the process. Ethereum enables the creation of electronic records for a vast range of use cases. We will discuss some experiences we’ve had, as there are numerous Ethereum real world use cases where distributed applications and records can be utilized. Unlike Bitcoin, Ethereum was primarily designed to execute complex smart contracts rather than as a value transaction network. Smart contracts add new value to decentralization, traceability, and immutability in data security and management. That’s why the Ethereum blockchain use cases are different from others.
What is the main use case of Ethereum?
It’s important to understand what this blockchain offers that other platforms find very costly or impossible to achieve. Although Blockchain was designed as a public ledger and has been primarily used in that way, this applies to most Ethereum use cases. However, the feature of having smart contracts enhances the functionality of working with it.
To begin, let’s remember some of the strongest and unique characteristics of the system. Decentralization, traceability, and immutability can facilitate permission management, allowing us to decide how to act and, importantly, how to invest our valuable resources like time and money. Decentralization makes the system more fault-resistant. The independence of this system from any type of government grants us the freedom to govern and modify the system according to our needs. The transparency of records in this infrastructure provides trust, as anyone can access and verify the qualities of the records that are indefinitely public. These are Ethereum use case examples.
How Can We Use These Smart Contracts and Electronic Records in Real-World Use cases?
Given that the platform allows users to write and execute custom code, any smart contract can establish its own execution conditions without needing external authorization but can interact with other agents. The records of these actions, usually exchanges of assets, are verified anonymously by network members. Once transactions are completed, the asset records are updated automatically, ensuring stability between parties. This simplifies monitoring and subsequent audits, as verification can be performed at any time. The ability to locate operations whenever desired allows anyone to inspect the validity of the data.
Once information is recorded on the blockchain, this can be number, text, or images, it cannot be altered or deleted. This ensures that the stored data cannot be modified, providing security and trust to the system (Stability). The records are permanent.
As a starting point to leverage blockchain services and integrate them with traditional software, Ethereum also offers the possibility to interact with other networks, exchange information, and operate between them. It is highly flexible for integration with different systems (Compatibility).
Transactions and operations are visible and accessible to everyone, regardless of their activity on the network. All transactions are publicly recorded, allowing any user to verify and audit transactions without intermediaries (Transparency).
This allows anyone who meets the required conditions to participate without needing prior authorization. In blockchain, this means that most people can join the network, validate transactions, and contribute to the consensus without centralized restrictions or controls (Freedom).
This practice facilitates managing and controlling one’s own assets without relying on intermediaries. It gives users the ability to maintain full control over their funds and private keys, ensuring that only they can access and manage their assets (ownership). Several Ethereum use cases has been tested and can radically change the following fields in the future.
Transportation
The intelligent transportation system (ITS) benefits from technological innovations by improving automation and traffic management, saving resources. A blockchain framework called the Smart Transportation and Logistic Framework (BCTLF) integrates logistics with blockchain and IoT. Traditional vehicular communication systems are vulnerable to privacy breaches. Blockchain’s distribution and decentralization attributes can minimize these vulnerabilities and the challenges associated with maintaining pseudonyms and certificate distribution.
IoT
IoT-based applications have become popular in fields like smart cities, healthcare, education, and government. In these networks, many datasets are publicly available. Blockchain ensures the privacy and integrity of these datasets by using public and private keys for node registration and transaction verification. IoT devices connect to the blockchain to synchronize data and maintain interaction protocols. Researchers have proposed protocols for traffic control between IoT and blockchain networks, analyzing bandwidth and synchronization needs. A reference integrity metric (RIM) is used to maintain dataset integrity. An algorithm using hashmaps makes IoT network monitoring faster and more reliable. Before implementing IoT with blockchain, several questions need to be addressed by stakeholders.
Financial Management
Blockchain offers solutions to financial systems plagued by economic crime, high regulation costs, and centralized database vulnerabilities. Its features include decentralized databases, P2P communication, transparency, and permanent transaction records. Studies have shown blockchain’s impact on business models in North America, Europe, and South Africa, despite challenges like high costs and complex integration. Proposed blockchain architectures for risk management and trading platforms demonstrate enhanced supply chain resilience and efficient product lifecycle management.
Security and Privacy
Blockchain technology addresses critical security and privacy issues, especially in distributed cloud architectures. This secure model offers on-demand access to high-performance computing for IoT networks with cost-effective metrics. Researchers have evaluated blockchain’s feasibility and effectiveness in enhancing IoT security. For smart cities, a hybrid architecture using an Argon2-based PoW scheme was proposed, dividing the network into core and edge sections for better privacy and efficiency.
Healthcare
The healthcare sector requires secure handling of vast amounts of patient data. Properly recorded information improves treatment quality. Singh et al. proposed a model for electronic health records (EHRs) using JavaScript-based smart contracts. Another framework uses smart contracts to collect accurate healthcare information. Blockchain ensures that patient data is securely processed and protected, enhancing the security and reliability of health information.
Society Infrastructure and Government
Blockchain technology is crucial for e-governance, enhancing social and governmental activities by providing flexible services such as voting records, property registrations, and criminal records. Traditional centralized systems are vulnerable to cyberattacks like DoS and DDoS, while blockchain ensures data integrity with hash values and distributed ledgers. D5 countries (South Korea, Estonia, UK, Israel, New Zealand) are adopting digital governance, focusing on various sectors such as finance, health, and education, to build a robust digital economy and improve public services. Blockchain’s application areas in government include secure data management and transparent service provision.
Education
Every educational institution could track demographic data, test results, and certificates for students and teachers. This involves many stakeholders. Blockchain provides a flexible and reliable solution for record-keeping, helping manage challenges efficiently and accurately. It optimizes learning and teaching processes, unbound by time or space. The Knowledge Media Institute of the Open University and British Telecommunications launched OpenBlockchain, showcasing blockchain’s benefits in education.
What has been the final result?
Ethereum brought together a global community of experts, developers, and enthusiasts who actively promote the platform through events and competitions. Hackathons, conferences and meetups like Devcon and ETHGlobal or Ethereum Community Conference (EthCC) enable the sharing of knowledge and encourage innovation. These events bring the community together to explore new use cases, develop decentralized applications, and expand the adoption of Ethereum, strengthening its ecosystem and broadening its global impact.
Ethereum is a great opportunity due to its ability to automate and decentralize processes, its security and transparency, and its large collection of practical use cases. Its decentralized nature and the continuous innovation within its community.
