RR² Capital explores the top 5 trending crypto industries for 2023.
Cryptocurrencies and blockchain technology have had massive influence on many global industries over the past decade. Nowadays, you can ask anyone walking on the street, even in developing countries, and they would likely have heard the term “cryptocurrency” and know of Bitcoin.
The crypto space is thriving at the moment and adoption is rife. Almost every industry throughout the world is in some way or another either using or potentially exploring the use of crypto or blockchain to improve their business operations.
Some of the top 5 trending crypto industries for 2023 include:
Banking and Payments
Before the introduction of Bitcoin and other cryptocurrencies, people had limited control over their finances, having no choice but to entrust banks to store their money. Banks and other financial institutions make a profit from helping you store your money.
Banks charge you per deposit, purchase or transfer you make using your bank account. Furthermore, they also charge you interest if your account goes into overdraft. What you also may not know is that when you transfer money into your bank account, this money technically belongs to the bank and they may choose to do with it as they please.
Cryptocurrencies and blockchain tech are transforming the banking and payment industry by giving billions of people access to decentralized financial services no matter where they are in the world. Cross-border payments that would usually take days to process can now be completed within seconds with incredibly lower fees than through traditional financial institutions such as traditional banks.
Bitcoin and other cryptocurrencies enable anyone to send money across borders almost instantly and with low fees. All you need is an internet connection and your smartphone or laptop.
Cryptocurrencies give people total control of their finances. It is impossible to achieve true financial independence if you do not have complete control of your money. Money and the monetary systems that underpin it have been shown to develop throughout history. Even while fiat currency is still the most common type of money, cryptocurrencies are steadily expanding their use and are likely to be the next stage in the development of money.
Below are some of the benefits cryptocurrencies offer people:
24/7 access to your money
You always have complete control of your money, bank holidays and closure times do not affect access to your finances.
Cryptocurrencies are borderless
This means you can send, receive and spend crypto no matter where you are in the world. Fiat currencies, on the other hand, are limited per country.
Easy access to financial services
Cryptocurrency has the potential to bank the unbanked. There are roughly 2 billion people worldwide who remain unbanked and do not have access to bank accounts or other basic financial services. Crypto has the potential to change this.
Increased security
With crypto there’s less chance for fraud, transactions are permanent and can be publicly viewed on the blockchain.
Government
Governmental systems are notorious for being slow, non-transparent, and rife with opportunities for corruption. The implementation of blockchain-based systems has the potential to considerably cut back on bureaucracy while also significantly increasing the security, efficiency, and transparency of government activities. For example, Estonia is using blockchain tech to enforce the integrity of government data and systems. Andorra is also a country looking to regulate cryptocurrencies and blockchain tech.
Additionally, another popular application of blockchain tech is with digital voting. The tech has the power to end voter fraud through digital voting on the blockchain. In a traditional voting process, voters are required to stand in line and cast their vote in-person. The votes are then physically counted by an independent party, this is where issues of fraud arise.
Blockchain tech can be used for voter registration, the verification of voter identities, and the counting of votes. This will ensure that only valid votes are counted and that no votes are altered or discarded during the counting process. Blockchain-based digital voting may prove to be an important step toward more democratic and fair elections.
In 2018, Sierra Leone became the first country to use a blockchain-based voting system.
Music
The music industry is ready for some major disruption. That is precisely what Non-Fungible Tokents (NFTs) have the capacity to accomplish. Many artists have ventured into the non-fungible token industry, and a significant number of them are currently offering special edition albums and other forms of digital art. The implementation of NFTs in the music sector, on the other hand, has the potential to present significantly more advantages upon artists in the form of music royalties.
Record labels have traditionally had the potential to earn significant amounts of money from the music industry. To do this, however, music labels frequently exploit the artists. Artists now have the opportunity to experience true ownership of their own work thanks to music NFTs. NFTs have the capacity to store any and all data, including copyrights, trademarks, and other intellectual property rights.
The ability for fans to directly support musicians has finally been realized. Non-Fungible Tokens (NFTs) have the potential to pay out royalties depending on the streaming of songs, with earnings going straight to the NFT owner.
The NFT industry has been thriving over the past few years, many speculate that digital art will become more popular than physical artwork in the near future. Pak’s ‘The Merge’, the most expensive Non-Fungible Tokens (NFT) ever sold at auction, sold for $91.8 million. Bored Ape Yacht Club, and CryptoPunks are also some of the most popular NFT collections. Users can buy NFTs on various platforms including, OpenSea and Rarible.
The NFT market is estimated to expand to around $80 billion by 2025.
Gaming
The gaming industry has grown tremendously over the past few years, especially when it comes to blockchain and cryptocurrency adoption. The implementation of blockchain tech has made it possible for gamers to compete on a much higher level, while receiving rewards for their efforts.
Traditional gaming is centralized. This means that users/players are unable to transfer any of the rewards or experience points (XP) they earn in one game to another. Blockchain and crypto gaming changes this. Players are now able to use their in-game coins or rewards and collectible NFTs across various crypto games and digital worlds.
Gamers now have the opportunity to make money by simply playing a game. Who would have thought such a thing? This type of model is known as Play-to-Earn (P2E) crypto games.
Axie Infinity, for example, is one of the most popular crypto. Users have the ability to purchase characters known as Axies, level them up, and then resell them at a greater price. In addition, players can engage in combat with their Axies to win SLP and AXS, which are crypto game currencies based on the Ethereum Blockchain.
Players can use in-game NFT items like avatars, skins, weapons and themes to provide additional benefits to players. Players can also benefit from selling their NFT collectibles on NFT marketplaces.
Blockchain games have the potential to create vibrant in-game economies. But only time will tell. According to a report, nearly 3.2 billion people will play games in 2022. What does this figure mean for crypto games?
SocialFi
SocialFi or “social finance,” is a term that represents the merge of social networking and decentralized finance (DeFi). In simple terms, a SocialFi platform is essentially a blockchain-based social media platform.
Within the SocialFi area, users have the opportunity to generate revenue through the creation of content and engaging with other users. Users are also responsible for sharing key decisions for the improvement of these platforms under a decentralized governance scheme called a Decentralized Autonomous Organizations (DAO).
SocialFi projects provide an increased level of privacy and security of the personal data of their users, unlike Web 2.0 social networks who sell their users’ data to third party organizations.
People are seeking to have better control of their data and freedom of speech. Furthermore, influencers and content creators are continuously looking to monetize their social media following. This can all be done by using platforms provided by SocialFi. These platforms are starting to become increasingly popular and will likely thrive in the Web3 world.
The Future is Crypto and Blockchain Tech
As you can see, cryptocurrencies and blockchain tech are poised to take over the many industries. As more industries embrace crypto and blockchain tech, we’re likely to see a mass disruption of transformation with new use cases.
The use of blockchain tech and cryptocurrencies has the potential to revolutionize the ways in which people interact with one another, communicate with one another, work, and play. The possibilities are truly endless, and extend far beyond the industries that are discussed in this article. Whether you’re a musician, a products company owner or involved in the gaming industry, digital currency and blockchain tech will likely offer great benefits.
We’re excited to see what the future holds for crypto and blockchain tech, you should be too. Remember to keep an eye on crypto and blockchain tech, they may be able to benefit your business in ways far beyond your imagination.
About RR² Capital
RR² Capital is a Lisbon-based Venture Capital (VC) firm empowering the ‘new internet’. RR² specializes in disruptive technology spaces such as decentralized ledger technology, Artificial Intelligence (AI), machine learning and digital assets. They believe that many traditional businesses and organizations will implement these technologies, adding immense value to the core of those businesses.
RR² Capital’s mission is to capture value by investing in early stage projects and teams who are leading innovation and disruption within the Web3 space. The team operates a strategy centered on a long-term vision, developing long standing relationships, utilizing trusted advisors in decision-making, building an integrated network of first-movers and instilling the trait of flexibility across its team.
This has positioned RR² Capital as experts in value creation, reporting 1,011% returns across a portfolio of more than 140 investments in 2022.
For more information about RR² Capital and our expansive disruptive technology-focussed investment portfolio, visit our website here or send us a mail here.
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