Goodmorning once again to all the Tryberz out there reading this. This article is also for the newbies in the crypto game. Risk; everything in this life revolves around it. Living life itself is a risk, so this no different from investing in cryptocurrencies.
There are prons and cons to every new technology and the first one for decentralized application is..
1. Scalability… Since it is decentralized, coming to a consensus on the best way to make decisions is a challenge. This has led to the creation of different types of crypto currencies since it is easy to just create your own based on how you think it should work.
Also, Bitcoin is still having a challenge – when you have alot of people using this technology today, the transaction fees become so high because the network does not have enough capacity to handle it.
2. Usability: Most Cryptoplatforms projects out there are really not user-friendly yet. Still very limited to technology savvy people.
3. The decentralised nature also brings about manipulation in prices, lots of scam projects, pump and dumps in prices etc
What are the practical use cases
Currently there are 2 active use cases that has gained adoption. Most others are just theoretical for now.
1. Instant Global payment Settlement: with banks removed from the equation, and validation of transactions ongoing 24 hours a day, seven days a week, most transactions processed over a blockchain can be settled within a matter of seconds
2. Smart Contracts: It is now very possible for people to have a technically binding contract with someone and having it automatically executed without lawyers.
3. Investment/Fund raising: Have you heaed of the term ICO? Initial coin offering? Or security token? This is a new way for projects to raise funds without giving out equity in their business. I will explain this in detail ater
Other case practise still in theory:
1. Decentralised Digital IDs: Imagine facebook, google and other platforms we have today not been able to store our identities
2. Supply Chain monitoring
3. Real estate, Land and Title protection
4. Data protection and record keeping:
That is all I know for now
What is the Future of Digital Assets:
Cryptocurrencies and most especially decentralised applications are all still a work in progress* This is why I believe this is the best time to get into the industry if you can spot the projects/teams that gain mass adoption.
Prediction is a tricky business though, It’s so easy to be wrong and so hard to be right.
1. Institutional Investors: I believe more decentralised apps. will be released in the coming years and institutional investors will have more confidence to invest. The 10% of projects that make it through this bloodbath will turn into the Amazon, Google and Facebook, so good time to bet on it.
2. There will be less scam projects and more practical use cases
3. Cryptocurrencies will still be volatile
4. Blockchain systems are only the first successful implementation of decentralized consensus mechanisms. I predict that there will be more.
Thanks for your time once again.