Since 2013, blockchain startups have raised over $23 billion, with the vast majority of that investment coming from Initial Coin Offerings (ICOs). Between eliminating intermediaries and having short investment timeframes, the advantages of crypto fundraising proved to be massive.
Over the past couple of years, a variety of new fundraising methods have also become available to entrepreneurs and blockchain developers. As a result, many are now considering alternative options such as Initial Exchange Offerings (IEOs) and the more regulated Securities Token Offerings (STOs). For some companies, raising the traditional way through equity raises has also proven to become more popular and sustainable.
Despite volatile market conditions, blockchain entrepreneurs have powered through regulatory uncertainty and changing markets to continue building decentralized services, products, and technology.
A Noisy Landscape With a Hopeful Future
While the abundance of blockchain-based projects may seem like the industry is flourishing with promising new ventures, that is unfortunately far from the truth. Similar to the conventional startup ecosystem, many blockchain ventures struggle to attract and maintain a healthy user base and are abandoned after a few short months.
As a result of these factors, investor uncertainty with token-based raises has never been higher. Many projects, even those being launched in 2020, lack clear vision and utility. This has made the entire crypto and blockchain asset class seem less desirable to investors and early adopters than only a couple years prior. Like with any emerging asset class, education and trust are essential to gain new interest.
The responsibility of the foundation is to act as the marketing arm and to help promote adoption through education and awareness. By lowering entry barriers and making the technology relevant to the mass market, the foundation is ultimately helping solve blockchain’s biggest challenge.
It is also important to note that there are still a multitude of verticals and industries where the potential of blockchain is quietly gaining momentum. In the following sections of this article, we take a closer look at which sectors could face massive disruption from this technology.
Media and Entertainment
Blockchain aims to solve these issues, and many others, by offering a more decentralized and democratic approach to the entertainment industry. Similar to how cryptocurrencies did away with the need for banks and financial institutions, blockchain-enabled media platforms are offering a platform for content creators and entertainers that is free of intermediaries and third parties.
Other forms of media, including journalism, also stand to benefit immensely from the technology. Most news organizations currently rely on advertisers for funding, which can sometimes lead to conflict of interest.
For example, insurance providers could benefit from smart contracts, which will ultimately make tasks such as claims management, underwriting, and policy issuance far more trivial.
The industry currently relies heavily on paper records, which blockchain can entirely replace with a secure and immutable digital ledger. This means records would be more organized, secure, and accessible.
As free speech becomes an increasingly important consideration for many countries around the world, blockchain and cryptocurrencies could help decentralize communication. Bitcoin, for one, has always been lauded for its censorship-resistance. In other words, data on a blockchain is etched permanently. They can be read by anyone, but never modified.
Aloha tokens can later be redeemed against other currencies or products and services on partner platforms. In this way, Aloha is not only solving the problem of blockchain adoption, but also that of internet penetration.As we can see, convenience is a key aspect of applying blockchain in the real world and is arguably the most important request from users.
While we explored three industries where blockchain could prove to be disruptive, this list is far from an exhaustive one. Similar to other emerging technologies, decentralization and blockchain technology will likely have far reaching positive impact in almost every major sector. While it is still too early to tell which application will lead to mass adoption, the number of companies with millions of users increases consistently and shows that blockchain is likely here to stay.No tags for this post.