USE CASES FOR CRYPTO ASSETS
Why Blockchain and Crypto Assets represent the next evolution of the Internet.
Crypto assets have lots of potential use cases but it’s very early and the technology is still new. One way to think about this is that with blockchain, we’re building the infrastructure for the next evolution of the Internet. New computer technology paradigms tend to emerge every 15 years. Think of Mainframes in the 60s, PCs in the late 70s, the internet in the 90s and smartphones in the late 2000s. Blockchain will be next.
What are some use-cases for crypto assets?
What are some use-cases for crypto assets?
Wow, that’s a big question! Crypto assets have a lot of potential use cases but it’s very early and the technology is still new.
One way to think about this is that with blockchain, we’re building the infrastructure for the next evolution of the Internet.
New computer technology paradigms tend to emerge every 15 years. Think of Mainframes in the 60s, PCs in the late 70s, the internet in the 90s and smartphones in the late 2000s. Blockchain will be next.
If we compare our progress to the current Internet: crypto and blockchain is still at around 1994.
We’re barely at dial-up speed.
We can see, dream and imagine the future – but the infrastructure is not yet built out and there are some big problems to solve.
So what is crypto for?
Crypto is a new form of money. An easy way to understand cryptocurrencies like Bitcoin is as a new form of money. Think of them as digital money for a digital world.
Bitcoin makes it possible for anyone in the world to send money to anyone in the world. With no bank in the middle. That’s a powerful idea!
Another use case for Bitcoin is as digital gold. Gold is valuable because it is scarce. Bitcoin is scarce too as the Bitcoin protocol says there will only ever be 21 million bitcoins.
The next use case is that blockchain has created a new way of raising capital. ICOs or Initial Coin Offerings are a process of raising funds where tokens are sold to early investors. This has democratised fund raising for new start-ups. Watch out though, ICO investing is risky!
There are many more use cases. Blockchain has the potential to revolutionise:
Supply Chain Management which would verify where goods originate from
Health Records – your medical history can be securely stored on a blockchain allowing doctors to access your info
Identity Management – In the future your Passport, Driver’s license and Social Security number will be encrypted into one single ID on the blockchain
Smart Contracts – these will allow us to represent any kind of formal agreement on a blockchain and automatically execute once certain conditions are met. This will make the world more efficient
And that’s just the tip of the iceberg – token powered eco-systems will monetise content creators, VR, The Internet of Things, gaming and social media communities in exciting new ways that will unlock the next wave of online creativity!
If you’ve read the novel Ready Player One by Ernest Cline or seen the Steven Spielberg movie – you can start to imagine this. In Ready Player One, everyone spends their time in a Virtual Reality world called the Oasis. The global economy is based on a virtual currency that can be used in the real world and in the Oasis. Imagine a future where you can use Bitcoin to buy coffee in the real world, and buy digital power-ups in a massive VR gaming environment. Pretty cool!
Here’s another one. As AI, the Internet of Things and Crypto mature and converge – our machines will start to talk to and pay each other. Imagine you’re in a hurry to get to the airport. You jump in a driverless Uber, and your Uber pays other cars micro amounts of crypto to give way to you.
And every time you stop at a traffic light, your Uber pays a tiny bit of crypto to get an instant electric charge from a charging plate on the road.
The real potential of Blockchain is to allow the transfer of not just cryptocurrency, but almost anything of value. For the first time in history, value can be sent anywhere in the world at the same speed as information, in a secure and trustless way.
So as you can see, the future is full of possibilities!
Crypto investing is exciting, but if you’re new to crypto it’s important to be aware of the risks. That’s the topic of our next video.