The Crypto Trend has brought forward several innovations- Metaverse, NFTs, and DAOs. The billion-dollar question- Where do we go now?
2021 will be remembered as the year cryptocurrency jumpstarted into the mainstream. Rising public awareness and gigantic profit margins brought investors and regular traders into the crypto exchange realm. Reports suggest that there are over 300 million crypto users on a global scale. At year-end, the global market capitalization for crypto stood at $2.21 trillion, with Bitcoin still holding the lion’s share at 40%. Metaverse, NFTs, DAOs- solutions built upon crypto and its underlying blockchain technology have blown big-time, acquiring billion-dollar investments all across the world. Risk-takers willing to traverse uncharted tracks may discover the huge potential in the following upcoming innovations.
Metaverse: Gateway to the Crypto Future?
Before discussing possible future innovations, it is essential to have a good grasp of the current-world metaverse impact. Both governments and giant tech corporations are delving heavily into the metaverse. The technology combining physical and virtual worlds use blockchain technology and AR/VR accessories. Although a developmental technology, the hype surrounding is actually real. With $10 billion, Meta (formerly Facebook) is one of the largest investors. Major players also include Microsoft, Nvidia, Epic, Roblox, and more.
Meanwhile, the latest LEAP technology forum at Riyadh witnessed multi-billion dollar investments in the same, including the construction of a full-fledged metaverse city. Cryptocurrencies power the metaverse economy, while blockchain drives the technology. Upcoming projections indicate an even brighter future, with the marketings expected to scale over $800 billion by 2024.
Crypto Innovations: NFTs, DAO, DeFi, and more
A significant advantage of the metaverse is the ease at which business organizations can create a virtual workspace with enhanced interconnectivity, actualizing the basic principle of blockchain decentralization. Upcoming metaverse developments will promote the growth of DAOs, crypto tokens, NFTs, and other assets facilitating the development of a decentralized digital economy.
While digitally-signed collectibles may seem like a fad, NFT trading has grown significantly, totaling an expenditure of almost $41 billion worth of digital assets during 2021. NFTs offer an attractive revenue channel for artists, musicians, celebrities, and content creators, rising by 704% within the span of a quarter in 2021. The trading markets are going strong and are likely to persist.
Decentralized Autonomous Organizations, or DAOs, target the distribution of rights among all the members within its blockchain network. Featuring smart contract governance and entitlement tokens, DAOs have been successful in venture funding, building NFT marketplaces, social media platforms, charity funding. The ConsitutionDAO raised over $40 million to buy an original copy of the US Consitution. The global market DAO capitalization at 2022 stands near $21 billion, with 497,000 active DAO voters and 1.7 million governance token holders.
Another element integral to the development of a truly decentralized economy is DeFi. The promising alternative offers several solutions for challenges faced by the traditional banking system. Often underpinned by stablecoins and digital smart contracts, it is capable of protecting the user’s asset valuations. However, users should be wary of the legitimacy of the service provider. DeFi fraud and scams are not uncommon, amounting to a global total of $10.5 billion the previous year.
Futuristic Tech: Practical Blockchain Applications
Blockchain is perceived as one of the major disruptors in the current tech scenario with its distributed storage features and ability to filter data/transactions through uniform consensus. The technology can be easily integrated with other advanced technologies such as AI, Big Data, Cloud, or IoT. Blockchain solutions have been highly sought after across multiple industrial domains including banking and finance, fintech, healthcare, space tech, logistics, and supply chain management. However, the options do not simply end here.
If we take a closer look, it is easy to observe that the inherent characteristics of blockchain technology can be applicable to a wide range of solutions. The distributed ledger mechanism prioritizes easy access, transparency, immutability, and traceability. Thus, the blockchain architecture can be easily used to build products where eliminating intermediaries benefits end-users and the overall process, both in terms of finance and performance efficiency.
Blockchain development companies like HashCash Consultants have been delivering blockchain innovations through better-performing white label trading exchange solutions. The architecture is customizable and easily caters to forex, crypto, and stock trading. Other possible solutions include real estate(both physical and virtual), reputation exchange, and even gaming.
The possible applications of a metaverse are practically limitless, as a virtual ecosystem may consist of all existing real-world features. A few short examples include:
- Virtual Office
The metaverse can create a virtual 3D office environment where the employees will be working from the comfort of their homes, possibly in cool funky avatars. Present examples include Microsoft mesh and Facebook Horizon Workrooms, though much work needs to be done.
Already under development in several varying stages, the metaverse can provide a more immersive learning experience for students, across the globe and time.
- Real Estate
Metaverse can provide an immersive 3D virtual home tour for prospective buyers, even without their presence in front of the property for sale.
- Business Applications
Any item available in the retail stores can be incorporated into the metaverse, providing buyers a better experience in terms of viewing and estimates.
The crypto and NFT mania may have subsided a bit owing to falling cryptocurrency valuations. However, that does not mean blockchain and its associated innovations will soon be obsolete. Metaverse and Web 3.0 are already undergoing development at a serious pace and soon will alter the existing definition of physical and virtual reality. For that to happen, crypto, DAOs, and NFTs need to transform into necessities.