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Although the talks around blockchain have always been connected to cryptocurrencies and their worth, it has powerful uses that appeal to the tech industry. People with blockchain expertise have become highly sought after. The industry saw nearly 2,000% growth in demand within three years (2017-2020).
Still, the world hasn’t yet fully seen the optimal use of blockchain as industries keep finding new ways to utilize the technology.
DeFi, DAOs, and DApps
One of the most appealing qualities about blockchain is that it’s decentralized. The industry is highly interested in creating a DeFi (Decentralized Finances) to provide a secure digital wallet based on smart contracts. DeFi can provide higher control and would be easier to use.
DApps is another future vision in which applications can be decentralized to perform tasks on blockchains. On the other hand, DAOs (Decentralized Autonomous Organizations) will be the general body commanding DApps and DeFi.
The way to reach DApps and DeFi has already started and is in the process of transitioning. Traditional organizational forms like LLCs (Limited Liability Companies) had already replaced their systems. With Web3, it’s now easier to set up and operate DAOs. It also makes international collaboration easier to achieve.
Metaverse
One of the most anticipated technological creations is AR (Augmented Reality) and VR (Virtual Reality). Many industries can benefit from the two technologies as humanity gets closer to achieving a fully immersive metaverse.
As blockchain develops, it can integrate well with various technologies, including AR and VR. The two can combine and get people closer to the metaverse. For example, the casino industry had offered crypto sports betting and VR casinos.
With the blockchain implemented into metaverse products, the world was introduced to non-fungible tokens (NFTs), which have been on the market for a while. As blockchain and VR technology are constantly improving, the world will likely see more products related to immersive products based on blockchain.
Blockchain-based Technologies
Blockchain isn’t the only modern technology catching the industry's attention. Several other technologies, such as AI (Artificial Intelligence) and Web3, are the two most famous examples that have garnered attention from various industries.
When AI’s analytical capabilities merge with the blockchain’s tamper-proof ledger, it’ll unlock many possibilities for better data analysis. Blockchain can also contribute to other AI uses, such as fraud detection and customer experience improvement. Meanwhile, the merging of Web3 and blockchain can fundamentally shift how people interact with the internet.
Bigger Influence in Global Finance
Although cryptocurrency has gained more attention in recent years, blockchain is expected to play an even bigger role in global finance in the future. The banking industry is estimated to spend $1-2 billion on blockchain annually. This is mainly to fund integrations into digital currencies, insurance, and asset servicing that are crucial to market trends.
Monetary bodies in several countries are also exploring the potential of Central Bank Digital Currencies (CBDCs). Over 100 countries are still developing and researching CBDCs, and the number of countries is expected to expand as they continue to experiment with CBDCs and find new use cases.
By improving payment efficiencies and reducing costs, retail CBDCs can help expand businesses and reach more potential customers. Digital payments can be more accessible and cheaper as they open up new market opportunities.
