Understanding Ethereum Applications – Improving Banking and Financial Services
It can be said that the use of Ethereum in banking and financial areas is countless. Areas such as activities related to treaties, bonds, contracts, payments and insurance are among these uses.
For example, suppose someone fails to pay a number of monthly installments without informing the bank. In such case, instead of removing all the rights of the borrower from the grantor, you can use a full-time smart contract in which all terms and conditions of payment and receipt are specified. For example, if a person does not pay his installments, this happens.
Or, in the case of government bonds, if the contract is executed through smart contracts, on a given date, a specific amount of the item can be given to the buyer.
These cases can be considered as the most important and best use of Ethereum in banking and financial sectors.
One of the most widely used Ethereum applications is decentralized payment software. This kind of payment, called “DeFi”, includes loans and debts that run under the umbrella of smart contracts and decentralized exchanges. MakerDAO is one of the most famous among these projects that has been able to create a stable cryptocurrency, using the Ethereum smart contracts, called DAI, and backed by Ether. The interesting thing about this coin is the constant one-dollar price.
The global economic system is based on transactions and Ethereum is supposed to change this system forever. It is possible to make such change in Ethereum smart contracts. With these contracts, anything can be transmitted without any risk. With smart contracts, you can register a copy of it in the form of a computer code without signing a traditional paper contract.
Imagine buying a picture from a platform such as Shutter Stock, you can buy this image directly from your photographer; just start a two-way contract. This can easily be done with a few simple commands on the Ethereum platform. For example: If you buy money in a contractual account, the photo will begin loading.