Possible use cases for Aeternity
æternity blockchain is an Erlang-based scalable smart contract platform engineered by programming pioneers to address some of the most fundamental challenges native to earlier blockchains. By redesigning blockchain technology at the protocol level, the æternity developer community has enabled the core protocol to understand and integrate a rich set of functionalities out of the box.
What Is Decentralized Finance (DeFi)?
Decentralized finance often called DeFi or open finance refers to the economic paradigm shift enabled by decentralized technologies, particularly blockchain networks. From peer-to-peer payment systems to automated loans to USD-pegged stablecoins, DeFi has emerged as one of the most active sectors in the blockchain space, with a range of use cases for developers, individuals, and institutions.
What are the potential use cases for DeFi & Aeternity ?
Monetary banking services
As DeFi applications are, by definition, financial applications, monetary banking services are an obvious use case for them. These can include the issuance of stablecoins, mortgages, and insurance.
As the blockchain industry is maturing, there is an increased focus on the creation of stablecoins.
And that’s where Aeternity comes in People asked for Stablecoin on Aeternity. And Jelly came up with real implementation. The Stablecoin is called AES (Aeternity Stablecoin) and will be backed by DAI.
If you are building a payment application on Aeternity blockchain, you will most probably want to use stablecoins for your services to guarantee the price.
So with this monetary banking services is made better with the application of Aes.
Decentralized Marketplaces
Arguably, some of the most crucial DeFi applications are decentralized exchanges (DEXes). These platforms allow users to trade digital assets without the need for a trusted intermediary (the exchange) to hold their funds. The trades are made directly between user wallets with the help of smart contracts.
Since they require much less maintenance work, decentralized exchanges typically have lower trading fees than centralized exchanges.
Blockchain technology may also be used to issue and allow ownership of a wide range of conventional financial instruments. These applications would work in a decentralized way that cuts out custodians and eliminates single points of failure.
Security token issuance platforms, for example, may provide the tools and resources for issuers to launch tokenized securities on the blockchain with customizable parameters.
And Aeternity delivers the power to tokenize both virtual and real-world assets.
So with this æternity can perform and execute smart contracts and enable creation of many financial institutions
It can also connect real-world data from the Internet with the blockchain-at soft real-time.
With this I hope you will agree with me that Defi use cases can be implemented using the æternity Blockchain.