o you recall life before the internet? Virtually any business function would be unthinkable without it today. Since then, there has been only one other tech breakthrough with a similar potential for disruption — blockchain. Globally, 86 of the top 100 companies are already “actively pursuing blockchain-related solutions for their business needs.”1
As its popularity grows and companies across every industry adopt applications, the blockchain space is shrouded in hype and buzz, often to its detriment. If you haven’t yet felt a seismic shift due to blockchain, it’s likely because many businesses are grappling with this new technology.
Blockchain certainly is disruptive. Then, what is the quickest and easiest way to enter the blockchain space? Let’s delve into the tech and its use cases, some of the buzzwords and how they relate and look at the easiest way to enter the Web3 space.
Blockchain
Blockchain technology is built on the distributed ledger technology framework and uses an immutable cryptographic code known as a hash, which makes it secure.
DLT is a decentralized database, a peer-to-peer network where every computer has a duplicate copy of the decentralized ledger and verifies its authenticity. So, automatically, every transaction on such a network is accurate, trackable and transparent.
Blockchain applications in supply chain tracking, asset management, cross-border payments, securing patient information, maintaining digital identity, and copyright and royalties are growing at an incredible 85.9% CAGR.2
But adopting blockchain technology within a company is a long-drawn process, which includes, at minimum, these basic steps3:
- Identifying and narrowing down a single use case.
- Creating a Proof of Concept.
- Selecting the most appropriate blockchain platform for the company.
- Building and testing the solution.
- Running and managing the network and activating the blockchain.
- Choosing the correct consensus protocol.
- Building the blockchain ecosystem with the right stakeholders.
- Selecting an intentional design that ensures internal and external stakeholders can use the network.
Alphabet has announced plans for integrating blockchain into its entire business ecosystem. If you think that works for the likes of Google and you’d rather stick to the one-off blockchain app, you’re not alone. There are more accessible entry points to blockchain and Web3.
Cryptocurrency
Cryptocurrencies are digital currencies secured by cryptography and the decentralized blockchain network and are not controlled by any central authority. This removes many barriers to a centralized financial ecosystem, such as intermediaries and border regulations.
The value of any crypto depends on the market forces and people buying and selling them. Cryptos are formed by mining, a process that involves solving complex mathematical problems where the miner is awarded coins.
Satoshi Nakamoto created the first-ever cryptocurrency, Bitcoin. Despite being unregulated, El Salvador and the Central African Republic use Bitcoin as legal currency. There are other cryptocurrencies known as altcoins, but be aware many of those are fake coins.
Smart Contract
Smart contracts are an application of blockchain technology that follows predetermined rules, such as payments made after goods are delivered and inspected. They are self-executing, meaning no human intervention is needed; hence, they have a massive potential to streamline business functions.
Home Depot uses the above method to pay its many vendors and avoid discrepancies, fraudulent payments or claims. Walmart uses smart contracts in their product tracking in a similar way.
Web3
The buzz around Web3 has been relentless, mainly because no one can quite pin it down. Essentially Web3 is being touted as the next evolution of the web that’s powered by blockchain technology and decentralization. It uses the tools and apps of blockchain, such as cryptocurrency, NFT, and crypto-wallets.
Ethereum blockchain says of Web3: “Instead of a Web monopolized by large technology companies, Web3 embraces decentralization and is being built, operated, and owned by its users. Web3 puts the power in the hands of individuals rather than corporations.”4
Companies like Nike, Disney, Starbucks and many others have already forayed into Web3. Starbucks recently introduced the Starbucks Odyssey, a new Web3 community for rewards where members can “unlock digital, physical, and experiential benefits that are uniquely Starbucks.”
Metaverse
The metaverse is a fully-immersive virtual world (or multiple worlds) not owned by a company or a person. Much like the web, it’s a collection of tools, apps, and users who interact with others through games or shopping.
Techs like blockchain and its derivatives like NFTs and tokenization, VR/AR head-mounted displays (HMDs), AR cloud, IoT, and AI all work together to make these metaverses possible.
From banks to coffee shops, many brands have entered the metaverse already. But Nike made a bold move when they bought Web3-native brand RTFKT and started offering tokens of ultra-rare collectible sneakers in the Roblox Metaverse they are calling Nikeland. The company is also offering other phygital and real-world rewards in Nikeland, such as court-side seats, phenomenally changing the potential of direct customer interactions.
NFT
With artwork NFTs selling for millions of dollars and seemingly everyone using them, NFTs or non-fungible tokens are one of the biggest hypes. These are digitally-unique files secured by the same cryptography as cryptocurrency and smart contracts and are based on blockchain. These give NFTs exclusive properties, such as uniqueness and the ability to prove ownership.
Brands are already using NFTs to create loyalty programs, sell tickets, and launch membership passes. Burger King launched their NFT-based loyalty program, Royal Perks, whereby you can scan a QR code and receive an NFT game piece. You get a collectible NFT or call with celebrities if you earn more than three pieces.
In truth, both Web3 and the metaverse are yet to be, and what we’re seeing today are only tangential possibilities. While how these developments affect businesses remain to be seen, the applications of NFT, on the other hand, are much more straightforward and more profitable. We’re taking a deep dive into NFTs, why they are the most accessible entry point into the blockchain, and how Rabble can become your expressway into the Web3 space in an upcoming blog. Meanwhile, let us know if we can help answer your Web3 questions here.
Source:
- https://www.blockdata.tech/blog/general/the-top-100-public-companies-using-blockchain-in-2022
- https://www.grandviewresearch.com/industry-analysis/blockchain-technology-market
- https://www.techfunnel.com/information-technology/blockchain-implementation/
- https://ethereum.org/en/web3/
- https://builtin.com/media-gaming/what-is-metaverse
- https://www.geeksforgeeks.org/top-applications-of-blockchain-in-the-real-world/
- https://research.aimultiple.com/smart-contracts-examples/
- https://www.settlemint.com/nfts-blockchain-use-cases
- https://www.fool.com/investing/2022/10/07/3-companies-making-moves-into-web3/
- https://www.parcl.co/blog/top-10-companies-investing-in-the-metaverse
