5 Broken Systems that the Blockchain can Fix 4 2294

blockchain

5We’ve all heard the expression “if it ain’t broke, don’t fix it.” But lately that seems to apply less and less to many of our existing systems. From banking and education, to advertising and politics; wide scale reparations are needed. But how do we go about fixing these defective models? Enter the blockchain.

What’s been labeled the most revolutionary technology since the internet, many of us are still struggling to understand how it works, let alone get our heads around how far reaching its implications may be.

But just like AOL and email were to the internet, cryptocurrency is just the first in one of blockchain’s many uses. “Blockchain has legitimate potential to change the world,” wrote Drew Prindle at Digital Trends, and it seems, he could be right. Here are at least five broken systems that the blockchain can potentially fix.

The Supply Chain

The supply chain is full of gaping cracks and black holes industrywide. Product markups, missing merchandise, currency conversions, inaccurate recording keeping, or failure to comply with agreed-upon terms can all be fixed with blockchain technology. As a public ledger available to all, updating in real time without human interaction, there’s no longer the opportunity for occurances to go undocumented or unaccounted for.

By operating with an “if/then” logic, (if you provide 100 kilos of bananas, then I will transfer X funds into your account), smart contracts can enforce the terms without human interaction or manipulation. Once a transaction is made it is irreversible. Not only does blockchain have the potential to wipe out corruption and increase accountability, it can cut out the middlemen, making for cheaper products for the end user.

Cybersecurity

There have been plenty of headlines about hacking scandals and fraud. Research by Ernst & Young found that some 10 percent of all ICO funding had been stolen. The problem is not with the technology itself, however, but with the secondary software built to store cryptocurrency, including wallets, exchanges, and custodial services.

Andrew Hinkes, adjunct professor at NYU Law School and practicing attorney with a focus on blockchain, explains, “Generally speaking, blockchains create an audit trail of all activity by its participants, which simplifies access control and monitoring.

Blockchains can also be used for hardware and software version control and sourcing, which can simplify version control and updating issues. Using a public blockchain with proof of work consensus can remove the foibles of human mistake or manipulation.”

Online Advertising

Most of us hate advertising online. In fact, some 40 percent of all Millennials use adblockers when surfing the net. But beyond annoying pop-ups, the severity of the problem in the advertising industry is starting to come to light. A German court recently ruled that Facebook’s use of personal data and privacy settings was illegal. The Center for Humane Technology has been established in an attempt to protect people’s privacy and curb their tech addition.

Using the blockchain could soon put an end to these problems, as it democratizes data due to its transparency and decentralization. No one company is able to own or sell your personal data anymore. This means that not only are people allowed to manage their own data but they can monetize it as well, thanks to blockchain’s ability to record micro fragments and create new value opportunities.

Monetization of even the smallest amounts of data becomes possible, from the number of steps you’re taking daily recorded in your Fitbit, to how many times you click a certain ad. More and more companies are allowing consumers to authorize their data use, and monetize it by dealing directly with the companies who want to buy it. Advertisers get the data they need and consumers are rewarded for it, while having control over who uses it and how.

The Underbanked

The financial system has many problems, beyond high transaction fees, conversion rates, and transfer delays, many people are not being granted access. Larry Boyer, Certified Business Economist and President of Success Rockets comments, “One of the most promising uses for pure currencies is to help people who don’t have access to the traditional banking system. In the US, that is the rural and urban poor and developing countries.”

The unbanked can also engage in global commerce thanks to cryptocurrency. Currently, for example, it’s not profitable for the traditional banking system to service customers below a certain threshold. But with cryptocurrency, a poor farmer in Kenya or Colombia can prove creditworthiness by having the cryptocurrency in their wallet. This will open up the entire market for companies and allow more and more people access to goods and services.

Elections

We may never know what really happened in the 2016 elections, but with accusations of fraud being hurled from one side to the other, imagine if we could put an end to voter fraud once and for all? And in developing countries where rigged elections and violent protests are often par for the course, blockchain’s immutability can guarantee clean elections.

Companies like Follow My Vote make sure that all votes are permanent and impossible to tamper with. Thanks to the decentralization of the blockchain, it would be practically impossible for hackers to break in and skew the results. Since every block in the chain is linked, they would need to simultaneously change the entire blockchain, a virtually impossible feat.

The blockchain is set to revolutionize many areas of our lives for the better. And if we can put it to good use fixing just one broken system in our society, we’ll be on the right path to making amends for our current failings.

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Christina is a technology and business communicator who has worked with high profile ICOs and blockchain influencers to break industry news.

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Stakester Brings New Experiences and Royalties to Gamers with NFTs Comments Off on Stakester Brings New Experiences and Royalties to Gamers with NFTs 683

A cheat code NFT allows owners to accrue money, prizes and royalties in the context of popular games.

On Tuesday, Stakester announced its intention to launch a VIP pass in the form of NFTs that it says will enhance the experience for users of its popular gaming app. 

The app, which pairs gamers with real-life opponents, allows players to stake real cash and prizes on their competitive skills in popular games like FIFA 21 and Call of Duty: Warzone. It’s seen significant growth since its launch in 2020, and touts 100,000 members across 31 countries. 

With the forthcoming NFT drop, users will now unlock the potential for larger prizes, access to VIP arenas, and 50% of royalties on the secondary market.

“The NFTs embody Stakester’s vision of delivering electrifying gaming experiences through the thrill of competition,” says Tom Fairey, Founder and CEO of Stakester. “NFT holders will help us shape new, undreamt-of entertainment experiences as gaming becomes ever more powerful and immersive.”

Two levels of NFTs will be offered. At .1 and .25 ETH, respectively, the barrier to entry is high, but Stakester is hoping gamers will see the value of layered experiences and unlocking additional incentives with real-world value. 

“The idea of earning rewards, just like a normal reward scheme but built around NFTs, is totally fit for the future,” says Mike White, CEO and Strategist of immersive entertainment marketing agency, Lively.  “The whole idea of royalties is truly exciting.” 

Stakester’s 50% royalty incentive, Fairey believes, will create stakeholders out of the players on his platform.

 “As well as the increase in gaming utility, the NFT drops provide Stakester users with a chance to invest in the future of the company and, for VIP Legendary holders, there’s also an opportunity to benefit from a royalty share from certain competitions and to make a passive income from NFTs, regardless of whether they go up in value or not,” he says. “Stakester is one of the only platforms to offer this kind of bonus.”

White points out that Gala Games is doing something similar with Nodes which allow gamers to receive rewards like NFTs when they contribute meaningfully to the Gala Network.

He predicts that legacy gaming companies will be adopting similar NFT models, but the winners in the NFT gaming race are hard to predict, particularly since there’s so much attention around NFTs that it’s hard to differentiate between hype and long-term value. 

“I’m sure it will be an immediate success,” he says. “Will it be a long-term thing? We can only wait and see.”

Why Is Everyone Talking About NFTs? Comments Off on Why Is Everyone Talking About NFTs? 434

In this writer’s opinion the NFT hype is warranted — but not for the reason most people are investing. 

For those who’ve been in the space since Bitcoin’s early surge, you’ll remember the Initial Coin Offering (ICO) boom of 2017. The crowdfunding vehicle, which mirrored an IPO on the public market, brought with it massive amounts of investment into the blockchain space that seemed to mirror Bitcoin’s rapidly increasing value. 

In retrospect, none of it made sense. 

With all the hype, the investment in the space didn’t match due diligence. As of August 2018, investors had lost nearly $100M in ICO exit scams, a major reason we no longer hear about ICOs. 

From there, crowdfunding through token sales was rebranded alongside SEC regulation as Security Token Offerings (STOs). Additional fundraising iterations to enter the scene are Initial DEX Offerings (IDOs) and Initial Exchange Offerings (IEOs).

NFTs are having a similar moment to the immature and potentially reckless ICO market of 2017. The danger can be credited to a mix of hype and a widely unregulated environment with various points of entry and gatekeepers that are not incentivized to shore up fraud. 

As a result, many purchasers of NFTs are falling victim to a spectrum that spans undeserving projects on the mild end and outright scams at the extreme. Meanwhile, hackers are exploiting the unregulated environment. 

Just yesterday, $3 million in NFTs were stolen via an Instagram phishing scam. 

This writer, however, is still bullish on NFTs — just not the ones that are getting all the attention.

NFTs represent a concrete entry-point into the blockchain with a tangible utility and infinite disruptive implications. 

Here are a few.

Digital Assets as Social Proof 

As a Millennial, I personally have a hard time understanding the notion of owning and assigning value to a digital asset, but my kids don’t. 

I’ve written about how Gen Z has already adopted the concept of social proof in digital environments by assigning socially relevant value to digital assets like video game skins. 

As Gen Z ages and becomes an increasingly powerful consumer population, this experience will matter. Whether or not their purchase behavior translates to adulthood remains to be seen, but our kids are already leveraging digital assets in the metaverse to exhibit their position in the social hierarchy in the same way that my generation assigned value to Jansport-brand backpacks. 

Their concept of digital assets will be fundamentally different from ours, and NFTs are likely to benefit. 

But Why Are NFTs Relevant to Me Now?

Social proof is far from the most interesting use case for NFTs. 

In the near-term, NFTs can be utilized to store sale information of physical goods on the blockchain in order to eliminate nefarious actors in fraud-riddled industries like fine wine and art. 

Moreover, NFTs can disrupt any industry with a substantial secondary market. By coding royalties into the smart contract of NFTs, original sellers of wine, art and other trade-susceptible brands and industries can ensure they’ll capture a fee anytime an item is transferred. 

This solves a major problem for creators like photographers, artists and musicians that are notoriously underpaid in comparison to the value they create for brokers. It also has the potential to cut out middlemen like auction houses, record labels, and galleries to democratize the creator economy. 

Other Innovators Have Introduced Creative Use Cases for NFTs

Gary Vaynerchuk utilizes NFTs as tickets for events and other value-adds to his community. Forbes introduced a series of NFT Billionaires that will update alongside the real-time NYSE to gamify their user’s NFT experience in a way that’s brand-relevant. Foxies.art is using a gamified version of NFTs to fundraise blockchain education for women. 

The utility of NFTs is confined only by the imagination of our innovators. Whether or not NFT headlines today will remain relevant is yet to be seen, but one thing is certain: the disruption is only beginning. 

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