Five trends that will push blockchain adoption past 1 billion users
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(Kitco News) – The ongoing saga that is the collapse of FTX is dominating the crypto headlines and has led many to write off the industry for good as billions in investors’ funds have evaporated with no hope of recovering what was lost.
While the exchange and its contagion were a common topic of conversation during the first day of the AIBC conference in Malta, those most active in building the space were also focused on the promising applications of blockchain technology that are gaining in popularity.
According to Alexander Filatov, a co-founder and managing partner of EverX Labs, there are five main trends that will help the blockchain space surpass 1 billion users in the next 6 to 7 years.
The first of these trends is GameFi, a popular sector that emerged during the 2021 bull market and introduced a way for gamers to make money doing what they love. Included in this trend are things like Act2Earn and Move2Earn, which reward users for exercising and being active.
Filatov grouped these areas under the larger Metaverse trend, which the CEO suggested could be one of the most influential sectors that will lead to an accelerated adoption of blockchain technology and Web3.
The other growing trend is an increase in tokenization and nonfungible token (NFT) tools, which are becoming more popular among large companies and creators who continue to discover Web3 revenue opportunities.
Improvements in the performance of blockchain protocols was the third trend Filatov cited, as more scalable networks will be needed to accommodate new users. The transition of Ethereum from proof of work (POW) to proof of stake (POS) was mentioned as an example of this. As you read this, developers for the protocol are now focused on scaling the new POS ecosystem to facilitate wider adoption.
Along with improving the underlying blockchain technology, developers are also focusing on upgrading the Web3 infrastructure and improving the user interface (UI) and user experience (UX) so that new users are enticed to stay and engage as they begin to explore the technology.
A fourth trend that is likely to lead to an influx of money and participants in the crypto-economy is an increase in government intervention and the establishment of regulations related to the use of blockchain-enabled technologies.
Several representatives from the institutional investment world have indicated that the lack of a clear regulatory framework is the biggest barrier to getting involved in cryptocurrencies, so the establishment of clear rules and regulations will allow these firms to start gaining exposure to the asset class for the first time. time.
It has been estimated that roughly one-third of institutions in the United States are already invested in crypto at some level, meaning that the available pool of institutional investors remains large and capable of making a big impact.
The last trend Filatov noted was an increase in experimentation with things like decentralized autonomous organizations (DAOs), social tokens, decentralized social networks, and Web3 media as the technology becomes more accessible.
One of the main uses of the internet for the everyday person is for social interaction, and this is a sector of the market where blockchain has yet to make solid inroads.
DAOs allow the community to make important decisions for a project and promote interaction between protocol users, and social media with built-in blockchain capabilities opens the door to things like creator rewards and monetization of social interactions.
While FTX is currently dominating the headlines, its effects will one day pass and the journey to the widespread adoption of blockchain technology will continue. According to Filatov, the current adoption curve largely mirrors that of the Internet, and the industry will surpass 1 billion users within 6 to 7 years if the trajectory remains the same.
Despite the short-term noise, the long-term outlook for blockchain technology and cryptocurrency remains positive as the number of developers looking to make their mark on the industry continues to grow.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
