Decentralized finance, stablecoins, tokenization and DAOs. The most important parts of the ecosystem built on Ethereum.
Decentralized finance, often called DeFi, is financial services that run in smart contracts. Users can borrow, lend and trade directly, without a bank or a broker.
Protocols such as Uniswap and Aave have been running for years and handle large sums. The risks include bugs in the code and sharp price falls.
Most large stablecoins, such as USDC and USDT, exist on Ethereum. They are used for payments, trading and as a safe haven in the crypto market.
Stablecoins are today one of the most common uses of Ethereum, and an important reason why companies and banks are interested in the network.
Ethereum has become the leading platform for tokenized securities, such as government bonds and fund units. BlackRock's tokenized money market fund was first launched on Ethereum.
Tokenization makes it possible to trade and settle securities around the clock, directly on the blockchain.
NFTs are unique tokens that prove ownership of something digital, such as art or tickets. They drew huge attention in 2021, but the market has since cooled.
DAOs are communities that manage shared funds and make decisions by voting in smart contracts. Many DeFi protocols are governed this way.