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What is the crypto currency for?
Cryptocurrencies are presented as a new form of fully digital currency, exchanged on a secure network, open to all, called blockchain . This decentralized technology is distinguished above all by its ability to suppress the banking intermediary, to streamline transactions and to offer unpublished uses. Concretely, it allows to send funds from point A to point B, wherever we are in the world, independently and without going through a traditional financial institution. This means more freedom, less borders and immense innovation potential. But the true heart of this revolution lies mainly in the blockchain .
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What is the crypto currency for? Blockchain: the heart of innovation in cryptocurrencies
When one wonders " what is the crypto currency for ?" », It is essential to understand that everything is based on a infrastructure : the blockchain . Imagine a large account book, visible to all, secured by cryptographic rules, and which is acting in real time as soon as a new transaction takes place. This database is maintained by hundreds, even thousands of computers across the planet.
In other words, everyone can verify the history of transactions without a single institution, such as a central bank, to control it. Key innovation ? Cryptocurrencies make it possible to hold and transfer value without intermediaries. This is the first time that technology has made such a level of decentralization and transparency in the financial sector possible.
How does the blockchain work?
The blockchain cuts block transactions Each block contains several exchanges and connects cryptographically to the previous one, hence the term "block chain". This method makes the data unfaler: once a block is registered, it becomes impossible to modify it without altering the entire chain. Thus, we obtain a cumulative register, very resilient in the face of censorship and attempted fraud.
Proof of work or proof of stake
To validate the blocks, different methods are used, called consensus mechanisms. The two best known are:
- PROOF-OF-WORK : “ Proof of work ”, which involves mining via the resolution of complex calculations. This is the case with Bitcoin .
- PROOF-OF-STAKE : The "proof of stake", which is based on validators having to lock funds ("staker") of funds to secure the network. This is the case of Ethereum since its "The Merge" update.
In both cases, there is a financial incentive mechanism to behave well. The malicious actors cannot manipulate the chain to their advantage, as it would require enormous computing power or considerable sums blocked.
How does the blockchain change the current system?
The blockchain upsets the historic model of centralized confidence. In the traditional banking system, a third -party bank or organization is called upon to keep the sales trace and guarantee the validity of transactions . With cryptocurrencies , it is the network itself which performs this validation role. This involves:
- transparency : all transactions can be viewed by anyone who wants to check the history .
- Less costs and waiting time: many intermediaries and administrative processes are eliminated.
- tokens holders who can guide the evolutions of the protocol.
- A greater resilience: even if a node (a computer validating the chain) ceases to operate, the entire network remains operational.
What is the crypto currency for: the different roles
A cryptocurrency is not just a simple digital currency. Each network can give different uses to its token. For example, some blockchains require the payment of transaction costs or services only in their native crypto. The majority of protocols also use it for governance , a bit like stock market stocks which give shareholders a right to vote: to have token is to be able to vote on key decisions that will shape the future of the project.
Governance: decide on the future of a project
In numerous decentralized finance projects ( DeFi ), the Tokens grant a voting right to users. It is often the way in which the community guides changes. Cryptos holders take part in proposals, discuss and vote. This decentralized governance creates a feeling of involvement and empowers everyone, since decisions apply to the code that pilots blockchain or application.
Native payment method
Some projects offer a service or an ecosystem. To take advantage of it, we have to pay in native cryptocurrency. For example, a decentralized streaming platform could require its own token to access the content or remunerate creators. This direct use makes crypto a kind of “fuel” of the platform, managed by the rules of the protocol (monetary emission, inflation, etc.).
It is also a way to reward users who participate. The more they use the platform, the more they receive tokens. They can then spend them or exchange them on exchange platforms.
Dividends, stoking and passive income
With decentralized finance, it is frequent to "staker" its cryptocurrencies to support the security of the network or the liquidity of an application. Staking consists of locking its funds in a smart contract in exchange for remuneration. In a proof-of-stake protocol, this step allows you to designate validators that will create the blocks, and part of the awards is donated to the stakers. This mechanism can resemble the perception of an interest, a bit like a remunerated deposit, but managed by a computer protocol rather than by a bank.
Quick transactions for e-commerce or daily payments
More and more companies, sometimes a big name, integrate the crypto as a means of payment. Of course, in the context of daily use, there are still some obstacles, such as volatility or variable network costs. But solutions emerge, such as high -performance layer 1 or low -cost "sidechains", to speed up and secure transactions at lower prices.
What is the use of crypto money: concrete examples, from the real world to the decentralized world
To better understand "what is the use of crypto money" and its uses, nothing beats speaking examples.
Example of governance on a DeFi protocol
Take Aave, a loan and loan protocol on Ethereum. Its users can deposit cryptos in collateral to gain interest, or borrow by depositing another crypto in warranty. The governance of the project is done via the Token AAVE, which gives a right to vote on proposals: change of interest rate, support of a new token, etc. Decisions are made collaboratively, without central management. Thus, we evolve towards a model where it is the users themselves who shape the service.
Project offering payable services in Cryptos
Let's look at Basic CAUTION TOKEN (BAT) used in the BRAVE browser. The goal is to remunerate content creators and share advertising revenues more equitably. Internet users can choose whether or not to see advertising, and whether they look at it, they perceive some tokens beats. They can donate these tokens to their favorite sites. Brave thus finances itself via this decentralized model where advertising is less intrusive and more respectful of privacy.
The main categories of blockchain projects
LAYER 1
A layer 1 is a main blockchain like Ethereum , Solana or Avalanche . It is a decentralized infrastructure on which we can create applications without going through a company or a bank.
They also serve to perform smart contracts (smart contractS), automatic programs capable of managing operations on their own when certain conditions are met.
Thanks to this, we can today:
- Send money internationally without a bank and in a few seconds.
- Sign a car rental or apartment rental contract.
- Manage health insurance that automatically reimburses a treatment if the conditions are met.
- Invest in projects or lend money to other people in a few clicks, via decentralized platforms.
Each Layer 1 has its own cryptocurrency (for example: ETH for Ethereum, Sol for Solana). This currency has several roles:
- Paying transaction costs : each action on the blockchain costs a small sum in native cryptocurrency.
- Ensure network security : validators or minors are rewarded with this currency to secure exchanges.
- Participate in governance : in the majority of cases, holders can vote on developments in the protocol.
👉 For example, on Ethereum, you can use ETH to pay a transfer of money, deploy a rental contract without intermediary, or interact with decentralized apps like Uniswap, Aave or Opensea.
In summary, the Layer 1 project provides technology and security, while associated cryptocurrency is used to make the entire ecosystem work and develop.
AI and intelligent services
In the wake of the explosion of artificial intelligence, we see projects binding Blockchain and AI . The idea is to decentralize access to algorithms, to reward calculation contributions, or to share the power of treatment without intermediary. Projects like Bittensor connect artificial intelligences to each other thanks to a native token (TAO) , which is used to reward high -performance models and buy artificial intelligence services directly on the network.
DEPIN (decentralized Physical Infrastructure Networks)
depolition networks (decentralized Physical Infrastructure Networks) want to replace large companies that today have our physical infrastructure -such as telecom antennas, cloud servers or Wi-Fi networks-by decentralized community networks .
Today, these services are provided by centralized players such as Orange, Free, Amazon Web Services or Google Cloud , which have and manage all the equipment. With the purple, it is the individuals themselves who provide the infrastructure hotspots, radio terminals or small servers at home , in exchange for cryptocurrency remuneration .
For example, Helium network allows anyone to install a Lora radio station to create a wireless network dedicated to connected objects (IoT) . In return, participants are rewarded in HNT . The objective: to build a global resilient network, open, without central authority , where each user can contribute to the coverage and draw an income.
Rwa (Real World Assets)
The acronym Rwa designates the tokenization of real assets such as real estate, raw materials or works of art. This consists in transforming these physical goods into digital tokens exchangeable on a blockchain .
The objective is to make them more liquid , that is to say easier and easier to buy or resell . Today, selling an apartment or a share of a business takes weeks, involves high costs, notaries, intermediaries, and heavy administrative procedures . With tokenization, these assets can be split into small pieces and instantly exchanged, 24/7 , all over the world, like a simple cryptocurrency.
Specialized platforms already make it possible to convert shares, bonds or real estate to tokens. Result: less friction , fewer intermediaries , and access more open to this type of investment, even for small carriers.
DeFi (decentralized finance)
The DeFi brings together protocols offering financial services (loans, savings, exchanges, insurance) without banking intermediaries. smart contractreplace the bank or credit organization, and users retain control of their funds via their portfolio. Projects like Uniswap or Curve offer automated, Aave or Compound exchanges are responsible for loans and loans, etc.
What is the use of cryptocurrency: the major advantages of cryptocurrencies in the face of the current system
To respond in detail to " what the crypto currency is useful ", let us insist on the concrete differences compared to the classic financial system:
- Security : The blockchain provides traceability and an almost insurmountable manipulation difficulty, thanks to cryptographic mechanisms.
- Transparency : Each transaction is recorded on the network. The rules of the protocol are public.
- Reduction of transfer costs: even if there remains a fee , it is often lower than an international bank transfer.
- Universal accessibility: a simple smartphone and an internet connection are enough.
- Decentralization : no need for government or bank to validate financial movements.
- Programmability: Thanks to intelligent contracts , you can automate a wide range of operations (insurance, loans, lotteries, Paris , etc.).
Verifiable data
In 2017, the Cambridge Center for Alternative Finance estimated at 2.9 to 5.8 million the number of users of cryptocurrencies worldwide. Since then, this adoption has experienced spectacular progression. In 2023 , the French Court of Auditors indicated that 14 million people used crypto-active in the euro zone , including between 1.5 and 5 million in France . These figures confirm an exponential growth in adoption , both global and European.
This massive adoption highlights the usefulness felt by individuals as well as by companies. Transfers cross -border, in particular, benefit from the speed and lower costs offered by networks like Solana, Base or BSC.
What is the crypto currency for: role of mining and security
For blockchains operating in proof-of-work , mining is the cornerstone of security. Minors use their computing power to resolve cryptographic puzzles. The first one who finds the solution creates a block, adds it to the chain and receives a reward in cryptocurrency . This costly energy competition makes attacks very expensive. No one can "rewrite" the history to steal funds or deceive the community, as it would be necessary to deploy more than 50 % of the total power of the network.
In a proof-of-stake , security is based on cryptos deposits made by validators . They lock a sum of money on the protocol, which encourages them to act honestly, under penalty of losing their bet. In both cases, the objective is identical: to protect the network against any manipulation or double expenditure.
What is the crypto currency for everyday?
Some people think that cryptocurrencies only serve to speculate, that their volatility remains a brake. It is true that being very young, and some dependent on small projects, their volatility is sometimes impressive. In the long term, as the market stretches, they will prove to be all the more relevant for:
- Finance : spare, borrow or send money abroad.
- Online purchases: More and more shops accept Bitcoin or Stablecoin stablecoin .
- Protection against censorship: People living in authoritarian regimes can bypass banking prohibitions.
- Support creation: artists sell their works in the form of NFT .
The "daily" side is sometimes limited by volatility . But the appearance of stablecoin s, stowed to assets such as USD ( USDT , USDC ) or gold, greatly facilitates payments or the use of blockchain without undergoing strong fluctuations.
What is the crypto currency for: focus on regulation and safety
In order not to be fooled, it is important to choose platforms . In several countries, these exchange platforms must register with a financial regulator. Canada or France, for example, require KYC (Know Your Customer) rules and sometimes require fundraising. This emerging regulation aims to fight against money laundering and fraud. It offers more confidence to new entrants into the Crypto universe.
Storage: avoid unpleasant surprises
As with your credit card, you should protect your wallet . Several methods exist:
- On an exchange: the easiest solution to buy cryptocurrencies but you do not hold your private keys.
- Software portfolio: A computer or smartphone application, more secure so well configured.
- Material wallet: small USB key, encrypted card or pad, considered the safest solution.
The private key is sesame. Anyone who holds it can spend your cryptos. It is therefore crucial to keep it safe, and make backup copies if possible.
What is the crypto currency for: what are the brakes and the limits?
Despite their potential, cryptocurrencies must still overcome some challenges:
- Volatility : Some projects display extreme variations.
- Scalability: Many blockchains seek to increase their transaction to compete with traditional payment networks.
- Risk of fraud: scams, market manipulations and "rug sweaters" are still frequent.
- Lack of adoption on the part of the general public: there is a need for simpler, more intuitive solutions.
Fortunately, alternatives are developing (including proof-of-stake or second layer solutions) to reduce electricity consumption and increase the speed of transactions .
What is the crypto currency for: on the way to massive adoption?
Cryptocurrencies far from being a niche phenomenon. Whether it is international money transfers, payment governance tools , or investment instruments, we see growing interest. Large groups are also going: Visa explores payments based on stablecoin S launching the Tokenized Asset Platform Visa (VTAP) in 2024, allowing banks to create and manage stablecoin backed on fiduciary currencies, such as the dollar or the euro. We are witnessing an unprecedented effervescence, nourished by continuous innovation and the search for new practical applications.
Standardization and legal supervision
At the institutional level, the European Union has the MiCA (Markets in Crypto-Asets) regulation in order to create a coherent framework in all the Member States. The United States takes action to better supervise stablecoin and decentralized finance. For example, the Clarity for Payment Stablecoin S Act of 2023 was introduced to the House of Representatives in July 2023 to establish a regulatory framework for payment stablecoin In addition, the Lummis-Gillibrand Payment Stablecoin Act was presented in the Senate in April 2024, aimed at providing effective payment of payment stablecoin These legislative initiatives aim to strengthen the confidence of the general public by reducing fraudulent practices in the field of crypto-active.
What is the crypto currency for? Multiple potential far beyond speculation
To conclude, to ask itself "what is the use of crypto money" is to explore all the uses allowed by the blockchain.
Far from being limited to a speculative asset, it opens the way to financial decentralization where confidence no longer depends on a central entity but on a global network.
Cryptocurrencies serve as support for daily transactions, a reserve of value in unstable economies, passports for decentralized services,
and even a governance key.
Thanks to them, anyone can participate in the digital economy without being dependent on banks or borders.
They make it possible to pay services, access applications, pay validators, reward the contribution to a network
and offer alternative finance solutions in the form of DeFi .
The field of possibilities is immense and continues to extend, as projects innovate.
Whether you want to transfer money instantly, store a value independently, or even tokenize real assets,
cryptocurrencies have a role to play, and their adoption continues to increase.
In this growing ecosystem, Directaire Sécous is one of the platforms that lists sites dedicated
to blockchain and new technologies, thus facilitating the discovery of useful projects and resources around crypto.
The future is emerging against a background of massive adoption and regulation. Practical profits for the general public are constantly improving and Blockchain infrastructure evolves to meet the imperatives of safety, performance and sustainability.
Finally, the heart of the response to "what the crypto currency is useful" is in this new decentralized universe:
facilitate transactions, share value, and radically transform our relationship to finance and economic exchanges.
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
