In recent years, digital currencies have been all the rave. However, the idea that digital assets are exclusively some form of currency is slowly falling by the wayside as different use cases are emerging and being rapidly adopted. This May, The Fintech Times is looking to showcase some of these new methods and explore how the digital asset ecosystem is evolving.
While regulations will play a massive part in determining the success of digital assets, another key factor is the development of the ecosystems using the technology. The growth of metaverse and web3 technologies will accelerate digital assets’ position in the mainstream finance world. We reached out to the industry to understand the extent of their impact.
The next internet
Christopher Alexander, chief analytics officer of Pioneer Development Group, the creators of the Liberty blockchain, explains how blockchain is the next internet and needs pioneers to accelerate its adoption. In this case, those pioneers are working on web3 and metaverse applications.
“Web3 applications and the metaverse are crucial in providing value to the blockchains on which they operate. Ethereum, Solana, Polkadot, Tezos and other blockchains are ultimately only as valuable as the utility they provide. Think of it like the 1990s. You have AOL, GeoCities, Netscape and others all trying to figure out what to do with ‘the internet’. In this case, the Layer 0 blockchains are the internet, and what ultimately goes on those blockchains will determine the winners and losers in the space.”
What’s the plan vs what is happening
For Guido Buehler, a non-executive member of the board at zondacrypto, the digital asset investment platform, web3 technologies and the metaverse can highlight the inadequacies of the current centralised system. In turn, this will drive the adoption of decentralisation.
“Web3 and the metaverse are providing a vast space for the use of innovative technologies that are changing the paradigm of the financial world by creating new use cases and financial opportunities. The metaverse is expected to open a new chapter for gaming and business by giving a space for the exchange of value, information and ideas encouraging users to enter the next generation of the Internet.
“This significantly contributes to the development of awareness regarding the inadequacies of the centralised world, which in turn helps in building interest around web3 and the adoption of crypto assets to the mainstream.
“That’s the theory at least. In practice, what do we have at the moment? Currently, the only business use case for Web3 is the Play-to-Earn industry. There is also significant activity in the luxury space, which can be considered as testing the potential of the Internet’s third generation.
“However, this is more marketing than usability. The proper direction at this point for metaverse’s development in my opinion would be to focus on embedded services and products where real-life pain points can be solved, such as, e.g, the health and life sciences sector.”
Web3 will drive digital asset demands
“Web3 is a direct result of digital asset technologies such as blockchain and DLT, providing the infrastructure necessary to build a digital economy that flourishes on chain,” says Billy Sebell, executive director of the XDC Foundation, an independent community-focused entity that was created through a grant from XinFin to promote and support ecosystem development across the network.
“As the development of both continues, user experience and onboarding will become easier. Users will be empowered by a new world of value and opportunity that eventually becomes a part of our daily lives. Just as web 1.0 and 2.0 increased the demand for data and information, web3 will increase the use of and demand for value that is powered by digital assets.”
Revolutionising communication
Jeremy Baber, CEO, paytech Lanistar notes how people fear the unknown. However, he explains that greater adoption of web3 will result in greater acceptance of digital assets and their value.
“As web3 technologies, particularly blockchain and distributed-ledger technology, are better understood by the public, it will help digital assets to become more mainstream. Fear lies in the unknown. Understanding the technology that underpins digital assets will alleviate that fear.
“The metaverse is an interesting use case as it’s still very much in an evolutionary phase. In the future, the possibilities are essentially limitless. It could certainly open up accessibility to financial services and help to make finance more inclusive to those who struggle to travel or are less digitally literate. Like other areas of life, like education and healthcare, the metaverse will revolutionise how we communicate with each other. We just don’t know exactly what that will look like yet.”
