Blockchain technology, which is more than a decade old, received worldwide recognition worldwide in 2021. What was once considered a “hype” and “crypto-fraud” technology has finally entered mainstream consciousness with real-world use cases. People are now realizing the commercial value of being able to prove the authenticity and uniqueness of an asset, taking advantage of the timestamp, transparency, and security of the blockchain.
Johannes sweeper He is the CEO and co-founder of Core LedgerA company that offers a decentralized, modular, and scalable operating system for token economies, designed for all types of assets and services. Schweifer was a co-founder of Bitcoin Switzerland AG 2013 and established the first core infrastructure with banking and accounting services, active until 2016. In 2017, he founded CoreLedger AG to pursue blockchain ideas beyond financial and speculative use cases. It actively uses blockchain technology to solve some of the world’s biggest challenges and showcase the true value of blockchain through practical applications.
Talking to financial technology timesSchwefer examines how blockchain technology will be able to impact new sectors in 2022:
NFTs (non-fungible tokens) have become “word of the yearIn the Collins Dictionary, which compiled a total of 14.1 billion dollars Over the past year, up from $65 million the year before. This particular use case of blockchain technology has provided millions of individuals around the world with access to new realms of finance – many of whom may have been traditionally restricted from creating wealth before.
Play to win games, where users can play to earn “rewards” that can be converted directly into real money, as highlighted, to help villagers in developing communities break out of vicious cycles of poverty. Both blockchain and art blockchain games have led to an increase in the adoption of cryptocurrency by people, which has doubled globally this year 220 million people.
In 2022, use cases for blockchain technology will continue to accelerate, beyond games and art. Blockchain has enabled use cases where blockchain integration helps make products and services cheaper, faster, and globally accessible. The year has already been dubbed as “The Year of Blockchain for Enterprise”So, these are five major industries where we will see greater adoption of digital asset tokenization.
- Coding of agricultural assets and other physical assets
When people think of encoding assets, they usually think of minting JPEGs as NFTs. But asset markup, which acts as proof of ownership, exists far beyond a technical use case.
Across Latin America, the same concept is used for a surprisingly different alternative origin – in the form of soybeans, cows and other agricultural assets.
Tokenization allows any asset to be accessed or traded on the blockchain. They are numerical “claims” about real values. Just as investors can now buy tokenized gold, which is real gold stored in physical vaults (minus the unnecessary physical transfer of gold in exchange forom location a to b), iInvestors can choose to invest in farmers’ assets, such as soybeans, cattle or corn.
for countries like Argentina, where the peso is depreciating sharply, legalizing cows or soybeans allows farmers to access national and international investment. Farmers can seek capital, while investors can seek access to fixed and liquid assets that will not decline in value.
Coding with real world origins is still only in its infancy. some expectations It is reported that the total tokenized asset market is worth less than $20 billion, while the total size of the digital asset market is $350 billion.
In 2022, as the global economy recovers from the pandemic and severe disruption to the supply chain, we will certainly see more investors discovering the ability to invest in other asset classes. Companies will also realize the ability to easily tokenize their assets on blockchain to search for a global market for investors, whose investments will be linked to real-world assets via smart contracts with an unprecedented degree of flexibility and access.
- Intellectual property and digital rights
NFTs have allowed us to deliver rights or value in a secure and verifiable manner, without the need for an intermediary. Unlike most cryptocurrencies, individual NFTs exist as unique assets and in 2022 we will see many use cases of how tokens can transform intellectual property rights.
Traditionally, to establish intellectual property rights, you would need written contracts, with the parties subject to due diligence to ensure that the assets are owned by those who say they belong to them. Coding the “rights” removes the need for this, because once the “right” or data is released, it is validated in an immutable smart contract.
We are already seeing Players in the film industry Protect their intellectual property rights, whether an idea, text, character or story is validated on blockchain via self-executing digital contracts containing the terms of agreements between buyers and sellers, or simply providing a contract for an individual stream or access to a movie.
We’re also seeing this in the music industry, where artists pull their music with verifiable contracts that stipulate everyone involved in the copyright, and Total royalties It applies to everyone involved in production.
IP protection is also critical to the transmission of 3D printing, also known as additive manufacturing, which can help reduce the need for cross-border trade. The pandemic has exposed our global dependence on supply chains. Companies and nations have had to urgently manufacture items, especially in times of crisis, from medicines to personal protective equipment and large machinery.
One challenge is to ensure that the IP of 3D printing files is not duplicated or leaked. 3D printing token means that companies can send a single token representing a “single right of access”. The token-based infrastructure will encrypt the file while restricting access to only the intended recipients.
We’ve seen a successful use case of this in Europe in 2021European countries have experimented with 3D IP address transmission to help create more sustainable local manufacturing opportunities and reduce the impacts of carbon dioxide emissions, reducing the need for cross-border transportation and dependence on other countries to meet local needs.
- Share revenue and real estate
The popularity of real estate coding grew in 2021, which was an asset class restricted to those already wealthy. In places like Hong Kong, which is called The most expensive city in the world To buy a home, a tokenized property, where investors can choose to buy a home part From home, rather than buying his entire worth, his popularity skyrocketed.
Revenue sharing models offer to invest in revenue from assets through sharing tokens. Companies give their owner the right to a percentage of future profits, which is a relatively safe bet for a profitable business. The profit is then paid to the investor via a “Payment Token” that can also be sold on third-party exchanges.
This can attract investors internationally, and the transfer of asset ownership can easily lead to managing multiple small investments with cost-effective payments. So going forward, we will see investors owning a variety of cryptocurrencies, collectible NFTs, and potentially beachfront villas in Southeast Asian countries within their portfolios.
In addition, coding forms for land registration and documentation are applied. Land registries need to keep records of land and real estate, and record tenure changes as they occur over the years.
In countries like Haiti, which has suffered earthquakes that have left millions homeless, these unexpected circumstances have destroyed the equivalent of 60 years of government archives, including land registry operations. Many Haitians have lost their ability to legally claim their lands, because there is no longer any evidence of this.
Converting a land registry to a token ensures a highly secure, mobile property registry that cannot be tampered with. We’ll see more modifications for this use case in 2022.
- Stronger asset protection and security
Many companies are required by law to keep a backup copy of their data. Other entities, such as law firms, have strict policies in place to maintain chain of custody over important legal papers. Not only can these storage and backup systems be on any random disk, they must use files revision resistant storage systems.
Such systems are usually very expensive, and the only purpose they achieve is to ensure that no one has tampered with the data, and that the auditor can find the original, unmodified backups when an audit is needed (eg in the event of a lawsuit).
Blockchain technology by itself cannot store large amounts of data, but you can create a digital fingerprint of the data, called a hash, and store it on the blockchain.
Along with the tamper-proof timestamp that is generated in tandem, the validator can use the hash to verify the integrity of the data, ensuring that the correct “master copy” can still be identified, even if someone tries to modify it. If anything changes regarding the data, tampering will be apparent, providing a cheaper solution to the expensive, audit-proof storage use cases currently in use by many banks and insurance companies.
Currently, leading companies such as iron Mountain; One of the largest document security companies in North America, it has been transitioning from physical document security to digital, citing blockchain as a leading technology for the future of the industry.
In addition, the audit firms of the Big Four such as Deloitte They explore the benefits of harnessing blockchain and tamper-proof timestamp data storage systems to improve security, all of which are clear indications that blockchain will play a greater role in the accounting, legal and financial industries over time.
- Trading carbon certificates and coding sustainability projects
Our carbon footprint is the next big topic for 2022, and fortunately, blockchain technology can provide solutions to the major challenges preventing lower temperatures in an ever-increasing climate.
Blockchain technology has received heat for the underlying wasted infrastructure of some chains, namely Bitcoin, because it requires thousands of node operators around the world to implement the computing power to validate transactions. In 2021, we have seen an increase in the popularity of more energy efficient chains such as Solana and Avalanche due to their more energy efficient validation mechanisms.
In 2022, we’ll see more rising stars come to the surface, like Sparkent For example, which uses less power than a TV using a verification mechanism called “Proof of Power”.
We will also see coding for carbon certificates trading, as well as coding for carbon credit sequestration projects. But bringing carbon in the chain, projects like Toucan Allowing anyone to code their carbon credits and make them available in the emerging world of decentralized finance.
Carbon pools convert ferromagnetic carbon balances into more liquid carbon reference tokens, enabling price discovery for different denominations on carbon assets.
carbon sequestration projects On the blockchain anyone has access to a token that is a real physical enterprise that reduces carbon in the air, so instead of buying a token that is just a speculative value of the asset, you are investing in a smart contract that will see greater investment in real-world carbon sequestration projects.
Besides these use cases, we will see companies using token and blockchain technology for a variety of creative cases, such as launching loyalty reward programs and gift cards where customers can trade their reward tokens in the marketplace. NFTs outside of art will be used to increase customer and fan engagement and loyalty to build brands; While companies will also use distributed ledger technology to keep track of accounting and data better than any existing systems. By 2023, we will definitely be talking about more innovative and useful use cases that companies may not have thought of yet.