The great success of cryptocurrency markets over the past three years proves that blockchain functions well as a core technology of cryptocurrency markets. It has made history in the financial world by overshadowing the roles of intermediaries like banks and managing online transactions with transparency, security and traceability.
Blockchain was developed to facilitate trade in the world’s first digital currency, Bitcoin, in 2008. Today blockchain is generally recognized as an innovative factor behind successful trade in all cryptocurrencies (the number of which exceeds 18,000) by worldwide speculators. That was proved with the highest cryptocurrency exchange value of US$3 trillion in November 2021 and a large number of new millionaires who achieved speculative trading. However, bad news has shaken investors’ confidence since early 2022 and affected people’s perception of blockchain.
Every cloud has a silver lining: the creative use of blockchain begins
The downturn of cryptocurrency markets has negative psychological impacts on blockchain. Yet, from technological perspectives, blockchain proved its effectiveness during the golden era of cryptocurrencies and it has been interesting people worldwide since. As cryptocurrency markets are bearish, blockchain is applied in more diversifying and creative ways. Such application is aimed partly at restoring the reliability and stability of cryptocurrencies which in the future must be regulated.
Besides, blockchain is a key technology for the revolutionary Web 3.0 which is a decentralized internet and for the development of new applications which require blockchain. In addition, the digital world which involves trade in digital currencies has proved that it needs support from blockchain.
It comes as no surprise that the blockchain technology is being applied creatively to bring further development and new opportunities to the business sector. Phoorichet Thepdusith, Head of Blockchain Advisory at Bluebik Group Public Company Limited has recommended these four blockchain-related megatrends that should interest the business sector.
- Asset-backed tokens – They emerge in the world of digital asset trade after highly fluctuating cryptocurrency markets greatly damaged many speculators. Asset-backed tokens are based on assets in the real world for their reliability. The value of real assets is converted into digital coins. This is called tokenization. It is supervised by regulators called guardians who are duty-bound to evaluate the real assets and certify them. Although asset-backed tokens have just been used, they are likely to soon attract the retail investors who want to own expensive assets such as land plots and properties. The owners of assets or business can use the tokens to increase their liquidity.
- Initial coin offering (ICO) – It is a digital style of fundraising by offering digital tokens via blockchain to the public. Fundraisers issue digital tokens and set the forms of returns including revenue or profit sharing. ICO is a new and inexpensive way to raise funds conveniently and quickly. Consequently, ICO is very popular especially among startups in countries. ICOs have started in Thailand. They include SiriHub Token which is the country’s digital token for investment and Destiny Token.
- Connection between blockchain and metaverse – Digital assets are put on display in metaverses and blockchain is used as a core technology to support trade in digital assets and improve the liquidity of non-fungible tokens (NFTs). If metaverses are virtual worlds with business purposes, they will definitely need a core technology that can handle trade in digital assets. This is the reason why the blockchain-metaverse connection will happen in the not too distant future. Many parties are curious about when and how it will happen. Top brands are developing their products in the forms of NFTs to be available in metaverses. They include Nike, Dolce & Gabbana and MAC. The connection is a potential game changer in the business world in the future.
- Carbon credit markets bring about the new roles of blockchain – With its transparency, stability and traceability, blockchain is an interesting platform that can support carbon credit exchange which can help many industries that overuse carbon credits. Western countries, for their greenhouse gas emissions, want to buy carbon credits from Southeast Asian and African nations. Many parties are collaborating on standards to actualize trade in carbon credits and introduce a win-win solution for industries in many countries.
Revolutions can always happen in the world of technology. As a leading consultancy and service provider for end-to-end digital transformation, Bluebik views that it is possible for businesses to follow the new trends of blockchain and use this technology for their maximum benefits. This can happen when there is collaboration between the business organizations that are ready and have knowledge about their respective industries and the organization that excels in blockchain and marketing. Blockchain is not suitable for every business. Therefore, business development based on this technology requires the relevant and thorough knowledge of business organizations and their technology partner that can design right applications to serve their operations. Besides, blockchain application must comply with laws. Also, business promotion needs marketing campaigns and public relations by the professionals who are knowledgeable about both business and technology.
Interest in digital transformation in Thailand indicates that many industries are willing to apply blockchain to create new business opportunities. Bluebik is ready to meet the interest with its extensive knowledge of technology and marketing to guarantee mutual growth in the future.