Blockchain Is Much More Than Cryptocurrency
Using the term blockchain in a conversation will usually lead to a discussion about several newsworthy subjects, such as cryptocurrency, the metaverse, and Web3.
Theoretical, next-generation technological developments tend to dominate talks on technology. Blockchains have created entirely new asset classes for investors in cryptocurrencies and non-fungible tokens (NFT). They will fuel a new generation of inventions based on intangible concepts such as the metaverse and Web3.
According to Kieran James-Lubin, CEO of BlockApps, the potential of blockchain will be realised in more traditional domains. BlockApps is a blockchain technology company that focuses on real-world applications of the technology to improve the efficiency and security of corporate operations.
“You hear something different from most blockchain people. Maybe it’s a personality thing, but I think the greatest promise for blockchain technology is in improving the world as it is today,” said James-Lubin. “It’s less about creating a whole new world on a blockchain for all of us to inhabit or all these interesting new asset classes.”
There are practical blockchain applications.
BlockApps searches for transactions with insufficient transparency and trust. First, James-Lubin has identified a unique potential in the food market, where consumers and restaurants are more concerned about sourcing.
BlockApps uses in enterprises. Image: BlockApps
BlockApps can assist food producers, and customers trace where their food has been and what procedures it has experienced from seed to table by utilising blockchain technology.
This trend began with food, according to James-Lubin, who noted that there is a growing need from consumers for openness in supply chains. People used to take the retailer’s word when they saw labels such as products from Argentina or Australia or organic in grocery stores. Now they want to know what it implies, such as whose farms the food came from and what happened to it along the way.
BlockApps provides comparable services for environmental and social governance (ESG), delivering a blockchain application that aids in the tracking of carbon footprints and offsets across the value or supply chain.
In a further application, BlockApps use blockchain technology to assist the city of Reno, Nevada, in tracking and maintaining information on historical sites.
According to James-Lubin, they had used an all-email system to keep track of this, but then they digitised all information, and the record was immutable on the blockchain. It’s a compelling use case that impacts their day-to-day operations. There were a few trillion blockchain-native assets in the crypto industry, but over $500 trillion in traditional assets are still awaiting tokenisation.
Future cryptographic uses of blockchain
James-Lubin is aware that cryptocurrencies represent a significant advance in blockchain technology.
“They’re amazing,” he remarked. Suppose you eliminate regulation as a barrier, even for a few years, and enable programmable financial services. In that case, you end up with a great deal of rapid innovation – some nasty and intriguing.
Non-fungible tokens (NFTs), which are not quite an asset class, are another beneficial blockchain innovation since they may enable new business models, including long-term residual payments to artists, producers, and publishers.
Applications of blockchain on the horizon
Eventually, most of the world’s wealth will sit on or be monitored by blockchains, but real estate will be among the first to be affected, according to James-Lubin.
Most of these riches will consist of land, land titles, and real estate. If we consider the process of acquiring and owning a property, their municipal and state record-keeping practices are antiquated. There is a sense of urgency to implement a more transparent, real-time system for these assets, and blockchain solves a significant portion of these issues.
Additionally, blockchain enables an efficient settlement layer for trading traditional assets. While publicly traded equities and some bonds are already and effectively exchanged, private securities and other types of debt are frequently transacted murky and inefficiently.
Moreover, investing in private funds and securities is sometimes a time- and resource-intensive process, which blockchains might assist automate.
According to James-Lubin, currently, public markets function rather effectively. In the long term, blockchain technology will be used for them. In the near future, however, specific market sectors lack enough infrastructure, and this is where the technology will take root first.