How Blockchain is Creating New Industries

How Blockchain is Creating New Industries

As 2021 comes to a close, almost everyone has heard of cryptocurrency, and likely NFTs as well. However the technology behind these new industries still remains less understood. Don’t worry if blockchain sounds confusing, for the sake of this article you don’t need any prior understanding. However in the future, understanding blockchain technology will be a useful skillset.


Blockchain’s Significance

It is understandable that many people don’t realize the true potential of blockchain. However we are just beginning to understand exactly how many new industries blockchain technology will create. At this point, the two largest blockchain industries are crypto and NFTs. Beyond this scope, blockchain is finding practical applications such as creating tickets for events. However this is about to change, especially as the transition to Web3 continues to unfold.

Companies such as Ethereum, are staking the future of blockchain on decentralized apps. These applications provide users with features that are made possible by blockchain. A great example of new utilizations of blockchain is www.enzym.io, a platform that incentivizes users to socialize in real life. The odds are you’re probably wondering how this has anything to do with blockchain, we are getting there don’t worry. This social app provides users with a variety of games, which when played can allow users to win ZYMs. The way in which users are connected is especially unique. Unlike most social platforms, Enzym encourages real life interactions. ZYMs are a cryptocurrency that operate on the Ethereum blockchain. Certain actions within Enzym also require the use of ZYMs, which helps initiate the exchange of ZYMs. This cryptocurrency could begin to gain real world value. Especially as social apps that operate on blockchain continue to grow.


What Exactly is Blockchain?

With all of the buzz surrounding blockchain, it’s only fair to provide a glimpse into how this technology works. Keep in mind this is a simplified version for the sake of keeping this article short. Blockchain is made possible because it utilizes a variety of systems located across the world. This group of systems provides a reliable network, this network is the fundamental principle of blockchain. Within this network, there is a distributed ledger which each system must individually validate. Whenever something is added to the blockchain, the transaction is added to a ledger. In order for this ledger to be validated, the person adding to the ledger must also have the entire history of transactions related to that respective ledger. Perhaps that was a lot to take in, however this explanation helps to shed light on the concept of decentralization. This method of distribution is the opposite of what most people are used to. A more familiar way of adding or storing information is through a closed network of systems. A great example of this is YouTube. This is a platform where users rely on a closed network at Google in order to operate.


The Future of Blockchain

Many blockchain experts predict that we are in the middle of a Web3 ‘transition’. This means we are beginning to see an influx of applications which operate on the premise of decentralization. In order to be decentralized, applications must achieve decentralization through being added to a blockchain. Some of the most common blockchains to date are Ethereum and Ripple. However as this Web3 trend continues to unfold, even more blockchains will emerge. Each one with their own set of unique benefits. Beyond this, companies such as Meta have staked their future on blockchain. Meta’s plan to build a metaverse will rely heavily on blockchain. This indicates we are likely at the forefront of a major transition to decentralization.


How Powerful is Blockchain?

In case blockchain doesn’t sound fascinating enough, just understand how concerned governments are over this new technology. China and India have both taken major steps towards restricting this technology. Their concerns arise over the fear of currencies that operate on blockchain, otherwise known as cryptocurrencies. However blockchain as a whole presents itself as a pandora’s box of possibilities. These new possibilities are enough to deter some countries altogether, something that may end up impacting the transition to web3.


Final Thoughts

Not many people realize this, however when the internet was first invented many people shared their doubts. The same is true right now for blockchain and the transition to decentralization. Although we cannot say for certain what the future holds in store for blockchain. The widespread adoption of this technology cannot be ignored. It is likely we could see more companies transition towards decentralization in the near future. Especially as tech giants such as Meta (formerly known as Facebook), unveil their own plans for blockchain.


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Nate Lee

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I’m a technical writer that specializes in crypto and blockchain.

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