Many great minds are on the planet right now believing that blockchain technology represents the greatest innovation since the Internet. Many believe that blockchain technology is the future for all of Humanity, and it's only a matter of time before we all use it in one way or another.
Others find it unlikely that blockchains will be able to dominate the mainstream tech industry in the same way as Internet-bound devices. They don't understand how something they consider inherently flawed can be widely adopted, other than a few use cases.
D-CORE is a hardcore believer in blockchain technology. We understand both sides of the argument. This article will help you understand how blockchain technology could change your life (and in what ways), what the future holds for blockchain, and what its current limitations are.
Can blockchain fail? This is what it would look like if blockchain failed.
First, some blockchain history
Before we explain how blockchain technology might be used in the future, or why it might not, it is important to remember how we got here.
Although you have now mapped the origins and evolution of Bitcoin, this milestone is only one of many foundations for blockchain technology. The following are other significant moments in Blockchain History:
1991 This was the first academic trace of what would become blockchain technology. Stuart Haber and W Scott Stornetta wrote the paper.
1998Computer scientist Nick Szabo, which some believe to have been Satoshi Nakamoto, conceptualizes "bit gold", a digital currency that incorporates a structure similar with Bitcoin. bit Gold was never used.
2000:Stefan Konst presents a theory for cryptographically secure chains and ideas for their implementation. These ideas were the catalyst for Bitcoin's adoption of blockchain technology in 2008, when it became the first use of the technology.
2008:Satoshi Nagamoto publishes the Bitcoin whitepaper, after registering bitcoin.org. Bitcoin became... well, Bitcoin. You already know what Bitcoin is.
2014: A crucial year. We see blockchain technology being separated from its use as currency for the first time. Blockchains are now being used for transactions and computation. Ethereum is the first step in this process. Blockchain 2.0 is the result. We're still in .
Anish Mohammed, founder of Panther Protocol talks about his refusal to accept a payment from industry disruptors like Ripple or Ethereum in order to design their Blockchain 2.0 protocols.
The second generation of blockchains is unique in that they can host "altcoins", which are tokens that can be seamlessly used within the chain. The ability of blockchains to process computation is known as "smart contract" and has attracted the attention of companies such as Microsoft, BBVA, and UBS in Blockchain technology.
Some believe that the third generation blockchains will be marked by the successful transition of Ethereum's most well-known smart contract chain into proof-ofstake (PoS). PoS doesn't rely on energy for verifying transactions as does Bitcoin's proof of work. Their stake is what defines the creator of a new block. This means that the network rewards users who participate in confirming the work dApps. It does not reward them for solving cryptography puzzles.
As we progress through the early stages of our journey, new challenges emerge
Blockchains' critics point out several problems that must be addressed before the technology can live up to its claims of greatness. These objections can be made by any team, whether you are on the team that believes these problems can be solved in a matter of hours or the one who thinks we should be focusing entirely on re-inventing central solutions, but it is important to address them quickly.
Blockchain Problem #1: Trust Issues
Blockchain technology's trust problem is inherent in its very nature.
Nearly 170 million Ethereum addresses are available. This number will continue to grow over time. DeFi protocols hold several billions of dollars. This number increased by almost 65% in the second quarter this year, and not in people, but in wallets. There is potential for significant expansion, as DeFi addresses represent only 1.81% of all Ethereum addresses.
We've seen hundreds of millions of dollars being lost or stolen due to hacks, thefts, rug pulls and other system failures. In 2020, $120 million was stolen from DeFi platforms. This creates a lack of security in the industry. Although blockchains are intended to be trustworthy networks, users need to still trust them to do their jobs securely.
This is especially important as blockchains are expected to handle sensitive data and information. It is even more important when you consider composability. This means that multiple solutions can be stacked on top of one another.
Blockchain problem #2: Costs
It is difficult to develop systems that allow for proper funding due to the decentralized nature blockchain solutions. Gitcoin is a unique solution. It was featured on our podcast.
As we have already mentioned, blockchains are expensive in all aspects. This includes their development, maintenance, energy, and even running them.
The hidden costs of blockchains can become problematic when there is low adoption or growth. This is due to factors like tokenomics and consensus mechanisms. This makes it less secure and more practical. This is compounded by the fact they are decentralized and the routes to monetization or profit for blockchain systems can often be obscure.
We could, in a sense, compare blockchain funding (and related blockchain-related funding) to funding other public goods such as roads. Imagine what this could look like without central governance or widespread awareness about the need for funding.
Problem #3: Centralization
Blockchains are often referred to as being completely decentralized. This is sometimes true in certain cases. Even though they try to be completely decentralized, social dynamics and network effects can cause them to become more centralized.
Bitcoin Core, for example, might be considered the gold standard in decentralization. However, it is only one organization that oversees its open-source development. This could seem to some to be problematic. You might also consider the fact that mining organizations like the Mining Council, which was recently created, can lead to centralization.
Detractors claim that the majority of users and coins are only available on a few platforms. Another problem is the centralization of production of most mining hardware.
Now that you've read all of this... let's look at the future of blockchain technology
It's not as if you didn't understand the lengthy introduction. After all, it's a complex world! It's almost over, so you can just accept it.
Now you know what is stopping blockchains reaching their ultimate destiny. We've also taken a hard look at where our current position is in the big scheme of things. Now we can discuss how blockchains will impact many industries in the future. Apart from obvious financial implications, there are many other benefits.
These industries include...
Video Games: Blockchain games and blockchain technology in the gaming industry
Although they may sound similar, the concepts described in the previous subtitle do not refer to the same thing. Blockchain games can be done exclusively or partially on-chain. However, blockchains could have many applications in the videogame industry. These are both attractive applications that could be used to signify something. It's worth taking a look at them both.
Konvoy Ventures' Josh Chapman is the MP. He said that gaming does not require blockchain. Gaming needs blockchain. Blockchain will not see widespread adoption and mass applications unless it offers significant value to the video game ecosystem." CryptoKitties is a Tamagotchi-like platform that focuses on breedable, collectible, adorable creatures called CryptoKitties. A kitty's blockchain presence ensures that it is unique, indestructible, and unreplicable.
Blockchains can also be used in videogames to create financial systems and transactions, as well as integrate interoperability and NFTs with elements from other games. When combined with Virtual Reality, interoperable solutions can lead to "the metaverse", also known as Virtual Reality.
It is expected that blockchain technology will also be used to create and distribute rewards systems for gamers. This technology includes platforms that allow event organizers or advertisers to reward viewers who participate in tournaments.
Blockchain for energy trading
Wikipedia states that Peer-to–peer energy trading (P2P), is: "a new paradigm of power system operation where sellers can generate their energy in dwellings and offices and then share it with others locally."
Blockchain technology can improve the efficiency of the existing markets and also disrupt and open new markets in a way that is not yet considered. Tokenizing these economies can make energy products and other commodities digital assets. This will increase competition and provide more providers. The existing markets can be redesigned to accommodate different asset classes, such as solar energy. This can lead to markets that are optimized for different asset classes (e.g. solar energy) rather than others.
These use cases are being pioneered by companies like RENeW Nexus. This allows rooftop solar system owners to sell excess electricity to other Australian consumers. Tata Power Delhi is another Indian company that launched the first peer-to-peer, peer-to-peer, solar energy trading program in Delhi.
This episode was recorded with WaBi founders, who are driving adoption of blockchains across China.
Blockchains can improve supply chain transparency, reduce costs, and lower risks at all stages of the chain. This can be used to authenticate products, from pharmaceutical goods to jewellery, and combat counterfeit. Blockchains are used to track assets, record transactions, and maintain transparency.
Blockchains are immutable so some organizations, such as the Dutch Standardisation NEN use blockchains for authenticating certificates. Nike also issued a patent for its blockchain-compatible trainers, named CryptoKicks. The patent uses a unique system to attach cryptographically-secured digital assets (basically, tokens) to a product.
Current research and testing are being done to test blockchains in healthcare. This will facilitate secure transfer and use medical records, manage drug supply chains (see above), and aid healthcare researchers in various areas such as unlocking genetic codes.
This technology can also be used to benefit healthcare insurance. Blockchain integrations were used in China to speed up payment processing. Estonia uses blockchain technology to protect healthcare data and process transactions. All of Estonia's healthcare billing is hosted on them. Estonia has 95% of its health information now being ledger-based and 99% all prescription information digital.
Blockchain, the music industry
NFTmania is something you are likely familiar with. Blockchain in music doesn't just apply to musicians who issue collectibles. Blockchains have the potential to solve many of the industry's most pressing problems. Blockchain technology can increase royalty payments for artists and allow venues and records the ability to track and settle distributions, even micro-contributions.
Vezt is a music rights marketplace that allows music fans to directly fund artists, including songwriters, and also provides funding for producers. This allows fans to earn royalties from favorite recordings. MediaChain, a P2P-based blockchain platform that allows music lovers to share information across multiple applications and organizations, is also called MediaChain.
Hollywood's future in blockchain technology...
Movie producers and creators can benefit from blockchain-based crowdfunding. The ledgers' properties can also be used to record and authenticate content on a blockchain, which will help avoid identity theft and piracy. It can also help music industry members share their loyalties and profit on the blockchain, which promotes transparency.
There are compelling uses for NFTs as well as interactive blockchain-based features in movies.
Blockchain's role in data storage
Although blockchain storage services aren't yet popular to the full extent they should, it is a trend that we will continue to see grow. Decentralized networks allow users to save their data and rent out space to others. These new systems can be organized in many ways.
0chain, for example, is a decentralized, free cloud storage service that's geared towards app developers. Transcodium allows users to rent hardware from other participants, and then use the computing power to do their jobs.
Should You Invest in the Future of Blockchains?
We might be able to help you if you are interested in the blockchain and crypto world.
Blockchain is a world where unicorns are born every day. The DeFi movement has opened up new avenues for capital raising and growth in a space that is experiencing unprecedented innovation and disruption. The DeFi movement has created unique ways for investors to see the potential in the emerging ecosystem and the technological advances of the past years. This makes it possible for projects to capitalize on the opportunity to grow capital.
We have created a proprietary method to help investors tap into these potentials.
D-CORE, the professional solution to this problem, blends academic efforts with quantitative research tools to produce the most reliable and objective reports within the blockchain industry. We can produce objective research tailored to your needs using our methodology and the research engine design. This allows you to plug into a system that can spot disruptors and streamlining your operations, thereby accelerating your business.