Crypto and its future with businesses
I promised to write about this topic so here you go! If you are completely new to blockchain and cryptocurrencies I recommend checking out this post: Introduction to blockchain and cryptocurrencies.
Now since everyone is up to speed let’s go on.
To understand the future
It helps to see what has happened in the past and what is going on now. Even though blockchain began as a peer to peer technology there have been many businesses created around it. Starting with wallet providers, crypto exchanges and custodians.
Major piece of revenue currently goes to exchanges which in total enabled over $150 Billion worth of crypto to trade hands in the previous 24h (at the time of writing, source: CoingGecko). To get some perspective, Nasdaq, one of the biggest stock exchanges, trades around $200 Billion worth of stocks in one day.
Now that there are established companies in these core parts of the industry, many are starting to explore more innovative use cases for the technology. One fun example is a wine company that offers more transparency about their production using the blockchain. You can get a bottle of Lamura Nero d’Avola from Alko and scan the QR code on the side to get the bottle specific production information. A quote from the website on what it means to be blockchain verified:
Data are immutable and transparent with a time-stamp associated to every registration. This technology allows Casa Girelli to guarantee you the territoriality, authenticity and quality of the product with an innovative digital relationship between producer and final customer who can see all the information about the winery, the fields and the entire process of cultivation and wine-making of the single bottle
Another interesting blockchain based product comes from a finnish fintech company Tomorrow Tech. Their DIAS -platform enables digital trading for residential real estate. They say that already one fifth of the real estate trades in Finland are done using the platform. Interestingly they had to get most of the banks in Finland to run blockchain nodes in collaboration with each other in the back-end. Here you can find a picture of their infrastructure: World Fintech Festival in Finland 2020 presentation (1:00:41)
It is important to note that the technology is relatively new and many of the end solutions are not in their final form. Even so, here are some of the areas that blockchain technology has been useful for businesses.
- Cross-border settlements
- Supply chain
- Document and certificate verification
- Identity management
Now let’s get to the exciting part! Here are some of areas that WeAre is going to experiment in:
Many decentralized platforms offer logins to user interfaces through web3 and blockchain credentials. While these applications are commonly used for wallets functionalities, the growth in their adoption could provide an opportunity for a more broad range of login purposes. This also lands perfectly on our company’s area of expertise.
Research and information platform
The aim with this project is to create the best tools for doing crypto research that we want to use. Insights matter a lot in picking products to use and making investment decisions. There is a sea of crypto projects out there (7764 coins according to coingecko at the moment of writing) and it can get hard to differentiate them and understand what they have to offer. With this tool we break down the information into key parts like history, tokenomics, use cases, people and connections.
Accepting cryptocurrency payments can be as easy as publishing a wallet address but after that there can be a whole lot of work with accounting and figuring out what to do with the coins. Especially for businesses. We want to try out different ways to integrate crypto payments and plan out the entire process to make it sensible.
Being part of the industry
Great thing about decentralized networks is that it is possible to be part of them. Our first step was to get into mining operations and do our part for securing a blockchain network. We are also exploring running full nodes and taking part in voting, delegating and validating.
Yield generating opportunities
Aside from our mining operations there are also other great opportunities for getting the most out of our assets in the crypto industry. It is possible to for example lend, pool, lock and borrow cryptocurrencies to get some returns on them. Even with stablecoins that have their values tied to a fiat currency such as euro or dollar. There are now many decentralized protocols that provide these services in a transparent manner. Of course, a big part of getting involved with these is doing risk analysis. We are also creating an automated trading platform and strategies to mitigate market risks and provide some additional returns.
Future of crypto with businesses
The current adoption would indicate that blockchain and distributed ledger technologies are here to stay in some shape or form. Some use cases will certainly prove to be more useful than others. At this early point it is hard to pick out the winners. This is why we want to experiment with the technology and find our own answers and to possibly create some great products while doing so.
It will be exciting to see how this industry will evolve. Will it become only an unseen back-end technology for companies to build on or an internet-like system that everyone actively uses. Regardless of which it will be, there will be many opportunities for businesses to take hold of.
This was my first blog post and I hope you liked it! In the future I will try to make these a bit shorter and focus on one topic. At the moment I’m planning our stablecoin strategy, so the next one is possibly about that.