In Part 1 of this series, we discussed how Blockchain has played a disruptive role and is reshaping the functioning of different industry sectors.
We talked about Decentralized Finance and how different areas of Traditional Finance like Payments, Exchanges, Loans are moving to the Blockchain. In this part (Part 2), we will look at other important sectors where Blockchain is playing or will be playing a major role.
The fundamental aspect of Blockchain is the distributed ledger. The distributed ledger ensures that there is:
- no central authority governing the Blockchain
- and data can not be tampered with.
This brings in the strongest use case of Blockchain, Ownership. As data can not be tampered with, any token you own on a blockchain is proof of ownership. Any copy of your token will be easily identified by the chain. So this helps settle disputes.
The traditional Art sector had not evolved much. It is finding it challenging to manage core issues like:
- royalty distribution
- involvement of middlemen
- having a segmented audience
- and no proper (and transparent) price benchmarking and discovery mechanism.
The growing popularity of digital art combined with Blockchain solves many of these problems.
You can now sell your digital art on the Blockchain to a global audience. And they are ready to pay money with no agent fees (only a minimum platform fee). Next, you decide your royalty %ge and the smart contract will automatically pay you your royalty in each secondary sales. The market decides your price. One can easily identify fake copies.
AI-generated art, Generative Art is becoming hugely popular nowadays. Organizations like Christie’s and Sotheby’s are now involved in Blockchain-based art.
The gaming landscape in Blockchain has exploded in 2021. The introduction of NFTs (Non-fungible tokens) allows you to use the same NFT across different games in a blockchain. Some are even interoperable with other blockchains. This is a game-changer as you do not need to buy in-game items from each game. You can also sell these in-game items in the secondary market or rent them out.
What started with small Indie games now saw major movements with big AAA games like Star Atlas, Cryowar, and Sidus Heroes launching on the Blockchain. Specialized blockchains like Efinity, Flow, and Immutable X focus on the gaming sector.
Metaverse has become a household name now. Facebook’s rebranding to Meta shows that even the biggest organizations focus on Metaverse.
Blockchain projects like Decentraland & The Sandbox are the innovators. You can own digital land. build your own business and network with people. You can play games, watch movies, buy-sell, a total experience. Metaverse will do to Social Media what Mobile Phones did to the Pager. In a remote working world, Metaverse will host virtual working spaces.
Digital Fashion is a strong trend. Top companies like Nike & Gucci have already started selling NFTs on the Blockchain. These include Shoes, T-shirts, necklaces, etc. We observe that many famous fashion brands in Europe have already accepted digital fashion as the way forward. Physical items paired with NFTs will prove the authenticity of premium fashion products. It will also give quick traceability.
Popular brands like RTFKT and Uniqly are already making news. Lukso is building an entire blockchain. The Dematerialized, a platform on Lukso, has conducted multiple NFT drops of famous fashion brands.
Fundraising is never going to be the same. Blockchain has given power back to startups. The startups can now choose to get funded directly from the community and avoid VCs as much as possible.
The introduction of Launchpads and the Initial Dex Offerings (IDOs) have revolutionized the way a community can participate in funding early-stage startups. The IDO platforms incubate, distribute tokens, and help in the marketing and development of the startups. Any person holding Launchpad tokens can now get a lottery or guaranteed allocation in the public sale of the tokens. All these before the tokens of the startup’s launch in the secondary market.
Some popular launchpads include DaoMaker, Seedify, Red Kite, Polkastarter, etc.
Other Notable Sectors
Finally, along with the sectors we have already mentioned, Blockchain heavily impacts sectors like Social Media, Identity, Supply Chain, Medicine, Insurance. The Republic of El Salvador has recognized Bitcoin as a legal tender in the country.
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