Cryptocurrencies keep evolving fast, and 2024 has proven to be no exception. What began as a niche market for tech savvies has blossomed into a transformative force across various industries. The crypto use cases in 2024 are diverse, expanding beyond finance into supply chains, gaming, environmental initiatives, and other sometimes least-expected use cases. We took a look at the most exciting examples of using crypto and blockchain technology this year, in both financial and non-financial sectors.
Financial use cases
DeFi
One of the most potent crypto use cases in 2024 is Decentralized Finance (DeFi), which has changed the way we think about financial services forever. DeFi helps to reduce the need of intermediaries, so users can lend, borrow, and trade directly on blockchain networks. This year, DeFi has grown significantly, and its market is projected to reach $231.19 billion by 2030, driven by a compound annual growth rate (CAGR) of 42.5%.
DeFi platforms offer attractive returns through staking and yield farming, providing alternatives to the offerings of traditional banks. Moreover, the accessibility of DeFi to those in unbanked or underbanked regions illustrates its potential to democratize finance globally. Because DeFi is allowing straightforward peer-to-peer transactions and reduces the monopoly of banks it is just at the beginning of its journey to form a more inclusive financial ecosystem.
Cross-border payments and remittances
In 2024, cross-border payments and remittances came up as a crucial application of cryptocurrency. Unlike usual methods that involve hefty fees and long processing, blockchain-based payments are fast, secure, and cost-effective. This year, using crypto for remittances became even more widespread, especially in regions where access to financial services is limited.
Cryptocurrencies like Bitcoin and stablecoins are being used to send money across countries more and more often, allowing instant transfers with minimal fees. It is especially beneficial for migrant workers who need to send money to their families across the world, offering them a more affordable and reliable solution than conventional banking systems.
Real estate and asset management
In 2024, blockchain technology was used in real estate and asset management much more often than last year and the years before. Beyond just tokenizing real estate, blockchain provides transparency and efficiency for dealing with property transactions. With smart contracts automating the execution of the agreement, the cost of real estate transactions decreases.
Asset management firms are also exploring blockchain solutions for tracking and managing various types of investments. For example, they start storing ownership rights in the blockchain and make transfers within the network, making their services more secure and transparent for the clients. This improves trust and reduces the risk of fraud and errors.
Non-financial use cases
Non-Fungible Tokens (NFTs)
In 2024, Non-Fungible Tokens (NFTs) will stay very popular, and their uses go far beyond just digital art and collectibles. NFTs have become a major part of the digital world, representing ownership of one-of-a-kind items on the blockchain. This year, NFTs are making waves in areas like gaming, real estate, and entertainment, opening up new ways to buy, sell, and trade unique digital assets.
In the gaming world, platforms like Artifact and The Sandbox have embraced NFTs, letting players own, trade, and even make money from in-game items. The idea of Play-to-Earn (P2E) games has really taken off, allowing players to earn cryptocurrencies or NFTs that have real-world value. This shift is turning gaming into something much bigger than just a hobby—it’s becoming a way to earn real income.
Supply chain and logistics
In 2024, one of the most exciting uses of crypto is in supply chain and logistics. Blockchain technology is making a big difference by creating secure, unchangeable records of every step in a supply chain, which helps cut down on counterfeiting. More companies are using blockchain to track products from where they start to where they end up, ensuring customers get exactly what they’re paying for. This added transparency not only builds trust but also helps businesses save money and work more efficiently.
Another cool development is smart contract supply chain management. Smart contracts are like digital agreements that automatically carry out terms once certain conditions are met. This reduces the need for people to oversee things manually, speeding up processes, especially in complex supply chains with many players and steps involved.
Intellectual property and digital rights management
Blockchain technology is also changing how we manage intellectual property (IP) and digital rights. Creators can now use blockchain to securely prove ownership of their work, whether it’s art, inventions, or writing. By recording their IP on a blockchain, they get a permanent, unalterable proof of ownership, which helps protect against unauthorized use or theft.
In the entertainment world, blockchain is being used to manage royalties and digital rights. This means artists and content creators get paid directly and transparently, without needing middlemen. It not only makes sure they get fair compensation but also speeds up the payment process.
Social and environmental use cases
Blockchain’s potential to make a positive impact on society and the environment is really being noticed in 2024. More and more projects are using blockchain to drive social and environmental causes. For example, blockchain can make charitable donations more transparent, ensuring that the money goes exactly where it’s supposed to, without getting lost or misused.
On the environmental side, blockchain is helping with conservation efforts. It’s being used to track carbon credits and verify the sustainability of products in supply chains. By providing clear, trustworthy records, blockchain is helping build a more responsible and sustainable world.
Emerging and experimental use cases
Central Bank Digital Currencies (CBDCs)
In 2024, many countries started talking about the creation of Central Bank Digital Currencies (CBDCs), which brought many arguments among financialists. CBDC is a digital form of a country’s fiat currency, issued and regulated by the central bank. Unlike cryptocurrencies such as Bitcoin, CBDCs are centralized and aim to complement traditional monetary systems.
Several countries, including China, have made significant strides in launching their own CBDCs. These digital currencies promise to make existing payment systems swifter, lower the fees, and provide greater financial inclusion. Moreover, CBDCs could potentially streamline cross-border transactions, reducing the need for intermediaries and lowering costs for consumers.
Blockchain-based IoT devices
The integration of blockchain technology with the Internet of Things (IoT) is another exciting development in 2024. Blockchain-based IoT devices offer enhanced security and data integrity by ensuring that data shared between devices is tamper-proof. This is particularly important in industries such as healthcare, where the accuracy and security of patient data are paramount.
In the industrial sector, blockchain is applied to improve the management of IoT devices, making the data collection from numerous sensors clear, reliable and secure. Industry experts expect that this integration of blockchain with IoT will keep growing, inspiring more innovations in other sectors as well.
Challenges and considerations
While new or improved crypto use cases in 2024, there are still many related challenges that the industry is yet to overcome. One of the most significant limitations is the absence of clear and structured regulations according to crypto. Those laws will have to be consistent to protect customers and still leave space for innovation.
Additionally, the environmental impact of cryptocurrency mining, particularly in proof-of-work systems like Bitcoin, continues to bother many. It already caused the urge to move to more sustainable and less energy-intensive consensus mechanisms like proof-of-stake. But it doesn’t completely solve the issue of the balance between blockchain industry growth and sustainability.
Conclusion
In 2024, the increase in the crypto-use cases shows that blockchain technologies are applied to real world problems in various industries. Steadily blockchain is reshaping financial services with DeFi, bringing cheaper cross-border payments. It transforms gaming, supply chains, and environmental initiatives, where these technologies are creating tangible value.
The adoption of digital assets, smart contracts, and blockchain-based IoT devices is becoming a reality, and each new upgrade pushes the boundaries of what’s possible. While challenges such as regulatory uncertainties and environmental impacts need careful consideration, the progress of 2024 shows that cryptocurrency is moving beyond speculation and becoming a critical tool for innovation and efficiency in a range of fields.In the rest of the year these use cases will likely deepen and expand, preparing the space for further advancements in the coming years.
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