Versatility of the blockchain and its real world applications

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As a seasoned retailer with decades of experience under my belt, I can personally attest to the challenges that the industry is facing today. The rise of e-commerce has undoubtedly brought about a new era of convenience for consumers, but it has also put brick-and-mortar stores in a precarious position.

It’s clear that when Bitcoin and the initial blockchain emerged in January 2009, few would have predicted its massive growth today. Rooted in principles of decentralization, transparency, permanence, and automation, the blockchain world has birthed areas such as Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and the Metaverse.

Essentially, a blockchain is a shared database system spread across multiple computers that cannot be altered once recorded, focusing on recording transactions and managing assets within a network. Initially, it was predominantly linked to cryptocurrencies due to its introduction with Bitcoin. However, its applications have broadened significantly. The industries highlighted demonstrate the versatility of this technology’s potential uses. Today, it is playing a pivotal role in various sectors, particularly reshaping (mostly for the better) our understanding of finance and financial transactions.

In this piece, we’ll delve into various industries to highlight the remarkable adaptability of blockchain technology.

Blockchain and Gaming

As a researcher studying gaming trends, I’ve noticed that historically, the gaming world has been quite structured. In my personal experience, I used to discover a game that appealed to me, immerse myself in it for the excitement and entertainment it provided, and then move on once I exhausted its content. If there was any monetary involvement, such as buying the game or purchasing in-game items, that’s where my funds would go.

Although I knew that the gaming industry is massive and lucrative, with a projected global market value of around $217 billion in 2022, growing at an impressive Compound Annual Growth Rate (CAGR) of 13.4% between 2023 and 2030, I never thought it would offer anything beyond the fun I derived from simply playing video games. It seems like most people shared this perspective since no game appeared to have any extraordinary benefits.

Until recently, it was typical for things to carry on as usual in the gaming industry. But then along came blockchain technology, shaking up the status quo. Since the arrival of the Play-to-Earn (P2E) model, there has been a significant transformation in the industry. Now, players can collect in-game rewards while enjoying their favorite blockchain games. For any gamer, this is an offer they simply can’t resist!

In essence, these game rewards – often presented as tokens or NFTs – can be swapped for traditional money (fiat currency), transforming gaming into a potential income stream. Moreover, NFTs in blockchain games bestow true ownership on players, ensuring that any assets you earn are uniquely yours. This shift towards personal ownership is significantly enhancing the gaming experience. It’s crucial because it contributes to the widespread acceptance of these games. The evidence of this transformation and its impact can be seen in the capitalization of the blockchain gaming sector – a staggering $13.2 billion at the time of writing.

Three trailblazing blockchain games leading the way in adoption are Sidus Heroes, Outlanders, and Utgard. Sidus Heroes is a Player-to-Earn (P2E) gaming platform that fosters a player-driven economy using Non-Fungible Tokens (NFT). In this game, players can acquire in-game items for trading purposes. Outlanders is an open-world Massively Multiplayer Online Role-Playing Game (MMORPG) that leverages blockchain technology to attract a broad audience while ensuring a smooth user experience through user-friendly interfaces and top-notch graphics. Utgard is a real-time PvP game where players can build an army for combat in 1v1 battles. Players can win native UTG tokens as in-game rewards, maintaining full control over their in-game assets.

These games incorporate the elements discussed previously in this article: they employ Non-Fungible Tokens (NFTs) and offer Play-to-Earn (P2E) features. Previously, gaming was simply a leisure activity where players paid game publishers, but now it has transformed into an expansive system where players can earn real-world value for their invested time and energy.

Blockchain Revolutionizing Retail

Over an extended period, the retail sector has encountered numerous difficulties. These hurdles encompass everything from fluctuating economies, rapid technological advancements, to shifting consumer preferences. For illustration, inflation has diminished the buying power of many prominent currencies globally. This situation presents substantial obstacles for retailers. Rising prices for goods and services can lead to decreased consumer spending, creating a tough predicament for retailers who must decide between increasing their prices (risking customer loss) or keeping them the same (suffering the effects of inflation).

The e-commerce industry boom has also affected retailers. The convenience of shopping online, plus lower overhead means that online platforms can offer prices that brick-and-mortar stores can not. As a result, retailers are forced to start and maintain an online presence alongside their physical stores. This makes modern retailing even more complex. 

In any retail business, a smoothly functioning logistics system is crucial for success. Any disruptions to this system can result in stock shortages, which can negatively impact a company’s reputation, sales, and overall profitability if not addressed promptly. By streamlining the supply chain process, retail businesses can avoid many of these complications. That’s where Libera comes in – a platform that leverages AI and blockchain technology to revolutionize the retail sector in developing markets. The goal of Libera is to bring transparency to the often hidden world of commerce by digitizing over 10 million stores and analyzing patterns in billions of overlooked transactions. A thriving retail sector is essential for a strong economy, and with the help of blockchain technology, Libera aims to provide innovative solutions that benefit this vital industry.

Scaling Ethereum Blockchain

As a crypto investor, I’ve witnessed firsthand how Ethereum, one of the earliest and most widely-adopted blockchain platforms for creating innovative products and solutions, has made its mark. The Ethereum network is a trailblazer in smart contract development, but as demand for it has surged, so too have its challenges.

  • Network congestion: The volume of transactions becomes too much for the network to carry, which leads to regular network outages. 
  • High transaction fees: Because of the network congestion, users are forced to pay a premium for their transactions to be prioritized. The blockchain quickly becomes too expensive for many users. 
  • Slow transaction speeds: Because of the overload, it takes the network a lot of time to confirm transactions. This affects user experience negatively, limiting the network’s utility for real-world usage. 

Current circumstances have hindered Ethereum from being the preferred blockchain for many developers at present. However, these issues have led to the creation of various scaling solutions aimed at resolving them. One such solution is AppLayer, a scalability solution for Ethereum built on C++. With AppLayer, developers can deploy Solidity smart contracts and stateful pre-compiles written in C++ as smart contracts. In comparison to similar networks developed in Golang, Solidity smart contracts in AppLayer run 10 times faster, while stateful pre-compiles are 65 times quicker.

Conclusion

The examples given illustrate how the real-world is being reshaped by the blockchain revolution. These projects showcase the potential of blockchain to revolutionize entire industries, introduce innovative economic ideas, and models. It’s expected that more industries will experience the disruptive impact of blockchain. Furthermore, cooperation and synergy between various sectors harnessing the power of blockchain technology will increasingly become a norm.

By the year 2032, it’s projected that the worldwide market for blockchain technology could expand from its current $17.57 billion to an astounding $825.93 billion, with a growth rate of approximately 52.8% over the next decade. This suggests a robust and continuous expansion of the industry; however, there are obstacles that need addressing. These challenges include enhancing scalability, clarifying regulatory frameworks, and improving user education. Addressing these concerns will be crucial in ensuring the lasting prosperity of blockchain technology.

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2024-08-19 12:52