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(Kitco News) — The ongoing saga of the FTX crash dominates crypto headlines and has caused many to permanently write off the industry as billions of investor funds evaporate with no hope of regaining what was lost.
While the exchange and its contagion effect was a common topic of conversation on the first day of the AIBC conference in Malta, those most active in construction in the space were also focused on the promising applications of blockchain technology that are growing in popularity.
According to Alexander Filatov, co-founder and managing partner of EverX Labs, there are five main trends that will help the blockchain space exceed 1 billion users over the next 6-7 years.
The first of these trends is GameFi, a popular sector that emerged during the 2021 bull market and provided gamers with a way to make money doing what they love. This trend includes things like Act2Earn and Move2Earn that reward users for sports and activity.
Filatov grouped these areas under the broader Metaverse trend, which the CEO believes could be one of the most influential sectors that will lead to accelerated adoption of blockchain technology and Web3.
The second growing trend is the increased use of tokenization and non-fungible tokens (NFTs), which are becoming increasingly popular with large corporations and creators who continue to discover the possibilities of Web3 monetization.
Improving the performance of blockchain protocols was the third trend Filatov pointed out, as more scalable networks would be required to connect new users. Ethereum’s transition from proof of work (POW) to proof of stake (POS) was cited as an example. As you read this, the protocol developers are now focusing on scaling the new POS ecosystem to facilitate wider adoption.
Along with improving the underlying blockchain technology, the developers are also focusing on updating the Web3 infrastructure and improving the user interface (UI) and user experience (UX) so that new users will be motivated to stay and participate once they start learning the technology.
The fourth trend that will likely lead to an influx of money and participants in the crypto economy is the increase in government intervention and the establishment of rules related to the use of blockchain-enabled technologies.
Many in the institutional investor world have indicated that the lack of a clear regulatory framework is the biggest barrier to getting involved in cryptocurrencies, so setting clear rules and regulations will allow these firms to access this asset class for the first time. time.
It has been estimated that roughly a third of institutions in the US are already investing in crypto at some level or another, meaning that the available pool of institutional investors remains large and capable of making a big impact.
The latest trend noted by Filatov has been an increase in experimentation with things like decentralized autonomous organizations (DAOs), social tokens, decentralized social networks, and Web3 media as the technology becomes more accessible.
One of the main uses of the Internet by the average person is social interaction, and this is one of the market sectors where the blockchain has yet to gain a foothold.
DAOs allow the community to make important decisions for the project and facilitate interaction between users of the protocol, while social networks with built-in blockchain capabilities open the door for things like rewarding creators and monetizing social interactions.
While FTX currently dominates the headlines, its influence will one day pass and the path to widespread adoption of blockchain technology will continue. According to Filatov, the current adoption curve largely follows the curve of the Internet, and if the trajectory remains the same, the industry will exceed 1 billion users within 6-7 years.
Despite the short-term buzz, the long-term outlook for blockchain technology and cryptocurrencies remains positive as the number of developers looking to make their mark on the industry continues to grow.
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