The basis of any well-functioning project or technology is the creation of added value for the customer. If a new technology can already (or potentially) optimize the functioning of any system or bring a completely new way of functioning, it clearly has a place and purpose in the market.

Currently, blockchain-based projects bring this primarily due to the following features:

The digital assets we invest in can be divided into three basic categories, which are then further subdivided into a number of subcategories:

The digital asset market is built on new technologies and their application in practice. Very often, investors who are knowledgeable in other industries express their opinions on this market but do not fully understand the principles of this technology. Therefore, there are many myths and misconceptions circulating among investors.

Below, we will look at selected uses of blockchain technologies with the aim of showing simply and practically why this technology makes sense, what its real uses are, and the value that investors subsequently appreciate in the digital asset market.

Representative: Bitcoin (BTC)

This is the first and most widespread blockchain project that was created in response to the crisis in 2008. The problem that Bitcoin solves is mainly trust, security, and transparency. Because it is built on a blockchain, it allows the exchange of currency between participants without the need for an intermediary and without risk.

At the same time, the number of BTC is limited to 21 million, and it is not possible to create more, as is the case with traditional state-issued and controlled money.

Currently, despite its high volatility, it is primarily attributed the function of a store of value, also known as "digital gold." The main reason why Bitcoin is more efficient than physical gold is mainly due to its easier exchange, storage, and availability anywhere in the world. And all that is needed is access to the internet and the code to your virtual wallet.

The advantages of Bitcoin can be discussed for hours, and its growing community is very actively spreading awareness of its practical use. From an investor's perspective, it is important that its adoption is constantly increasing, and the number of holders is increasing. As a result, the susceptibility to market manipulation decreases. In short, increasing demand with limited supply most likely means long-term price growth for the selected asset. Questioning an investment in Bitcoin today is the same as questioning an investment in gold.

Representative: Ethereum (ETH)

Ethereum is a leader in the field of smart contract networks. Smart contract networks can be thought of as a "blockchain internet" that enables programmers to create decentralized applications. In order to use the network, fees must be paid, which are paid in the network's native coin, Ether (ETH).

In simple terms: the more applications that are in operation on the network, the more users are using the network, and the higher the demand for ETH, which means a rising price. In essence, holding ETH is like holding a share in a company that provides the internet. At the same time, holders of ETH can also have the power to decide on the future development of the network.

Examples of applications that can be created on such a network and the reason why someone would want to use it and invest in it will be shown through the example of tokens on smart contract networks.

Tokens are one of the youngest categories that the blockchain revolution has brought. Initially, currencies were created that allowed virtual money to be sent between each other without the need for intermediaries (banks).

Subsequently, smart contract networks were created, which allowed decentralized applications to be created through so-called smart contracts. This basically created a system in which it is possible to create specific applications, similar to when the first mobile phones with operating systems appeared.

You can imagine a smart contract as a simple command whose execution is ensured precisely because of blockchain technology. It could be a command, for example, that 1 BTC will be deducted from your wallet on a specific date if you do not return the borrowed USD to the predefined address of the creditor.

And this development allowed another step. And that is the creation of a whole range of projects that use the properties of blockchain to solve problems and create more efficient solutions than what current technologies have allowed us.

These projects are simply decentralized companies, and tokens of these projects can have various functions, such as being a "share in such a company," through which its holder receives a share of the project's revenue, but also decision-making power in the project.

There are thousands of these tokens, and there are many uses for them. Our primary focus is on those that have real value and working projects.

For someone unfamiliar with the environment, the number of tokens and their possible uses is certainly confusing. The range of new projects emerging on the blockchain is so vast that for many investors, this entire segment may appear only as a big bubble in which prices fly up and down by hundreds of percent without any logic. However, this market has its legalities, which we have known for many years now, and thanks to which we can select projects with the greatest potential for appreciation.

For example, we present simplistically selected use-cases of individual projects below to better understand the real use of this technology.

Category: Exchange Tokens

These are "digital asset exchange shares." In essence, the exchange charges fees for transactions. These fees are then used to finance the exchange's operations and distributed to token holders in a certain ratio.

These projects, therefore, have a clearly defined use-case, functional products, traction, users, and economics. This makes it possible to determine the relevant value of the token and subsequently consider inclusion in the portfolio after meeting a whole range of other conditions.

Category: Lending and Borrowing Platforms

These platforms allow end-users to lend money directly to each other without the need for an intermediary. The loan is secured by the value of "collateral" digital assets, so the lender does not take the risk that the borrower will not return the funds. It is the same principle on which banks lend to people, but more efficient.

Healthcare

Blockchain will in the future allow you to be in full control of all your health data. And that will be wherever there is internet access. It will be possible to share access with doctors and insurance companies.

By giving every patient control over their immutable data, there will not only be a significant increase in efficiency in terms of payments for care (no duplicate procedures or reports of non-existent procedures), but also in terms of improving the quality of care, where the doctor will always have complete and up-to-date information about the patient's health.

Insurance

Blockchain eliminates the risk of fraud and speeds up insurance payouts. Smart contracts significantly accelerate the payment of insurance claims when pre-defined conditions are met, resulting in new, more efficient and transparent insurance companies built on this technology.

Real estate

In the real estate industry, blockchain brings significant increases in efficiency and security. We may not realize it, but anyone can overwrite data in the land registry at any time, especially in countries with less developed legal systems.

At the same time, blockchain is a solution to the inefficiency of the process of buying and transferring real estate, including the handling of money. With the use of smart contracts, it would be possible to enter a command that, when the seller receives the money in their wallet, automatically transfers the ownership record of the property on the blockchain.

These are just a few examples of the uses of technology, which also has uses in computer games, collecting, media, and other areas of everyday life.