As we head into summer with falling markets and economic uncertainty, many are wondering: Does blockchain still have the mojo to change the world? Or it is on the fade?
How does the recent implosion of Luna and uncertainty around Celsius play into the greater vision for (and perspective of) blockchain? How do cryptocurrency markets in general play into the overall success of blockchain technologies? How do we begin to analyze their potential in light of the growing pains associated with any new technology?
The answers to all these questions will play out over the next few months and years.
The true promise of blockchain was never in getting rich from speculative investing nor in creating inefficient applications that probably will always be better off on a centralized database. The true promise of Blockchain lies in decentralization and tokenization:
Decentralization removes the “self-serving” middlemen that skim profits while providing little value.
Tokenization allows us to represent pieces (tokens) of real assets that are easily transferred without trusted third parties, enabling the economy to move with much less resistance than current markets.
So, where do we go from here?
Keep in mind the roots of this movement came from a group of “rule breakers” who created a monetary system designed to exist without a central authority—and this during a time when the Global Banking System was printing money to bail out the world from the 2008 economic crisis. I believe that future success will similarly come from those that are willing to challenge centralization, facilitate transactions, and enhance privacy. We are still in the early days of blockchain. As we move from Web2 to Web3, there will be incredible opportunity and also great risk.
Be careful out there.