Onboarding towards crypto mass adoption

NFTs are adding complexity and diversity to the blockchain ecosystem, and this new wave of utilities is attracting a much larger audience.

The blockchain cryptocurrency sector is just over a decade old and still fighting an uphill battle for widespread adoption. Those who have closely followed the industry’s rise know it has the potential to solve legacy financial systems’ biggest problems, but before crypto can truly go mainstream, it must first consider some of its own inherent flaws. .

For starters, crypto-based transactions are significantly slower than conventional payments, with the exception of a few cross-border use cases. Faster transactions are possible, but not without a hefty price tag out of reach for many users. This slow speed often means long wait times for transactions to be settled, resulting in network congestion. As we have seen with CryptoKitties in 2017scalability is a serious problem for existing blockchains and protocols running on it.

Apart from these technical limitations, there are many myths and misunderstandings in the blockchain cryptocurrency domain, which pose significant obstacles to onboarding. Those skeptical of cryptocurrencies often see it as “magic internet money” with little or no real-world value, or worse, a means for criminals to handle shady business outside the watchful eyes of financial regulators. This is despite the fact that 0.34% of cryptocurrency-based transactions global criminal activity.

Cryptocurrency is also often criticized for its voracious power consumption, with the average Bitcoin transaction use twice as much energy like a typical American house used in a whole month. Massive Bitcoin mining operations around the world consume massive amounts of fossil fuels to power their server farms, contributing to greenhouse gas emissions into our atmosphere. Some companies have started collaborating with power plants to use excess energy otherwise it could be wasted.

Bitcoin and Ethereum are trying to solve these problems through innovations such as the Lightning Network and Ethereum 2.0. Emerging blockchain platforms are also introducing radical and promising improvements, but as a whole, mass adoption into the mainstream is still a distant reality.

Despite these and other hurdles, the burgeoning community of crypto enthusiasts has made tremendous efforts to spread awareness and education – which is steadily growing. Additionally, as innovators build easy-to-use solutions to improve amateurs’ first-time experience, we’re gradually moving toward wider adoption. Let’s look at some of the key catalysts of this change.

NFT collectibles

One of the most successful and innovative discoveries to emerge from the blockchain sector in recent memory is non-fungible tokens (NFTs). While NFTs have multiple uses, the oldest and arguably the most popular is their collectible role. NFTs caught the attention of crypto enthusiasts who started CryptoPunks in 2017, and have since become cultural artifacts, unfolding one of the most important chapters in blockchain history.

NFT-based collectibles aren’t just JPEG images inactive in their owner’s crypto wallet. People buy these assets to show off on social media as a sort of virtual status symbol. Realizing the enthusiasm, Twitter has been working to provide users with the ability to authenticate their ownership of NFTs and show them in your profile. NFTs also have the potential to be much more than mere collectibles – fractionation is possible, for example, and so are DeFi derivatives.

torum is a company focused on growing the NFT and Crypto community and recently acquired investments from KuCoin Labs† Torum’s NFT marketplace is powered by their token XTM, which helps meet the NFT-focused needs of crypto communities. They will connect users in a SocialFi (Social Finance) ecosystem where cryptocurrency users and projects can collaborate and, according to their twitter, already have nearly 200,000 users.

Another market player lowering the barrier to entry to NFTs for new and existing crypto users is: Chronicle, a marketplace that creates authenticated digital collectibles for the world’s biggest brands, including stage, screen and television stars. Chronicle makes it easy for users to buy, sell, trade, and gift officially licensed NFT collectibles, even without technical knowledge, with an easy-to-use platform that accepts a variety of payment options, including credit and debit cards.

Games to Earn (P2E)

Blockchain-powered gaming is quickly becoming a sensation, with a combined market cap of top gaming tokens peaking at over $52 billion† Traditional gamers are already familiar with the idea of ​​in-game assets, such as weapons, vehicles, or loot boxes, around which entire in-game economies of equivalent real-world value have begun to emerge.

By leveraging NFTs and other blockchain-based innovations, decentralized protocols are taking in-game assets (and gaming) to a whole new level. Unlike traditional gaming, where assets are limited to the worlds of individual games, tokenized in-game assets have a real monetary value that transcends the virtual boundaries of the games, and will continue to exist even if the game ceases to exist. This development has led to an entirely new user-centric game paradigm: Play-to-Earn or P2E.

In our pandemic-ravaged economy, people had to get creative to make ends meet, and P2E games became famous in this climate. The prospect of making real money playing games is indeed exciting, but the focus on the economy of these virtual empires usually comes at the cost of compromised gameplay and visuals. The industry is evolving though, and quite quickly, with participatory and people-centric titles like what we’re seeing from Iron Sail, Whydah’s GameFi hub that has received $25 million from major blockchain companies.

runs on KardiaChainIron Sails Mytheria is an NFT trading card game that will be released in the coming months and will add a whole new layer to the Play-to-Earn model: Create-to-Earn. This allows artists to submit artwork to the gaming community and even create games to monetize their work. Thetan Arena is another game from Iron Sail that in the span of 2 weeks since launch has totaled more than 5 million users on all platforms. They reported that a number of daily active users has peaked at 2 million.

User-centric services and privacy priority

The disruption of user-centric services such as Data Management Platforms (DMP) and Creator Economies is another prominent result of using blockchain technology. Blockchain-based solutions can enhance these services and provide greater security, privacy and transparency, especially with regard to personal and sensitive data. This not only benefits companies and content creators, but especially the end users themselves. We have already moved beyond ordinary cryptographic encryption in this regard, thanks to companies like ARPA

ARPA CEO Felix Xu, who owns over 3,000 NFTs, attended Art Basel 2021 in Miami to network with NFT artists. Xu said ARPA’s Randcast technology uses cryptographic methods to provide a secure, fast and affordable way for projects to generate verifiable random numbers onchain. Verifiable randomness can improve the transparency of NFT minting, blockchain gaming, generative art, and more.

The tip of the iceberg?

Despite its nascent, the crypto sector has already reached a market cap of $2.57 trillion although it has seen a sale around the new year. As blockchain innovations continue to evolve, crypto companies will come up with new ways to add new users to their platforms. With more and more investment coming into the crypto industry, companies will eventually adopt human-friendly technologies for mass adoption. Either way, this is an exciting time and we are still at the dawn of the blockchain and cryptocurrency story. As that story unfolds, we may be about to witness an exponential and world-moving technology boom, with echoes of the early days of the Internet.

Image: Pixabay

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