Blockchain uses in the real world are still amazing

The crypto winter is temporary. Blockchain uses are advancing, says Johannes Schweifer, CEO and co-founder of CoreLedger.

With financial markets in disarray and gloomy sentiment, cryptocurrency and blockchain hype and speculation are on pause. Gone are the days when NFTs could easily reach millions of dollars. Now, digital images of cute animals or meme culture are increasingly being labeled as scams amid backlash from declining crypto markets.

Fortunately, there is a silver lining to every dark cloud. Bear markets signify the start of construction season. A new generation of builders may emerge. Companies get down to work and focus on continuing to develop practical innovations that generate profit and greater efficiency. They can overcome some of the biggest challenges we face today.

NFTs are nothing more than a small tokenization application. Many different items besides art can be turned into digital tokens. This allows any asset to be accessible and tradable on the blockchain.

So where exactly are these practical innovations being developed? Here are some examples of how blockchain for business is steadily becoming a critical aspect of our lives.

What Crypto Winter? Agriculture in emerging economies

As we globally recover from the pandemic, farmers have been dealing with the falling peso amid financial uncertainties in Argentina. Inflation is reaching more than 50%. More than 40% of soybean oil and meal production comes from Argentina. This puts farmers under pressure to liquefy their actual physical assets. It also makes them vulnerable to undermining by middlemen.

This is a frequent problem for agriculture and livestock, particularly in emerging economies. Your fiat currency is constantly devaluing. By tokenizing agricultural assets, farmers can potentially hedge against inflation.

Blockchain technology also allows them to access capital provided by national and international investors through blockchain. This is a solution that has been used on cattle ranches in Bolivia. Investors from around the world can participate through a tokenized revenue sharing model. This is where each token represents a percentage of revenue or digital barter.

Crypto winter? Digital exchange is advancing

So how can this be possible? All that is required is a digital exchange technology to increase liquidity in a token economy by allowing instant value conversion. This facilitates a peer-to-peer (P2P) contract exchange that allows parties to exchange tokens of different values. Chain any number of trades and payments together and choose the optimal path through thousands of available trades based on set criteria, as shown in the diagram below.

Forget Crypto Winter, Blockchain Uses Are Advancing

In essence, this makes anything tradable for anything else. While this development is exciting, much remains to be done to develop an awareness of the technology in order to reach its full potential. The more possible operations there are, the more useful it becomes.

More efforts between companies, regulators and institutions are also needed to facilitate this. There needs to be a change in the perception of technology: from fearing the unknown to understanding its benefits in order to establish appropriate guidelines.

While still relatively experimental, the total market for tokenized assets is estimated to be worth less than $20 billion. The total size of the digital asset market is up to $350 billion, highlighting the tremendous scope for growth that can be achieved.

Crypto Winter and the fight against climate change

Another critical area currently witnessing successful experimentation with tokenization is the fight against climate change. Carbon credits are measurable and verifiable emission reductions from certified climate action projects. Companies can reduce, eliminate, or avoid greenhouse gas (GHG) emissions by using them.

They are transferable instruments certified by governments or independent certification bodies to represent an emission reduction of one metric ton of CO2, or an equivalent amount of other GHGs. A credit owner can use a credit to offset their own GHG reduction goals.

Carbon credit tokenization aims to overcome problems of poor credit quality, operational transparency, and project measurement and evaluation. By tokenizing credits, blockchain enables greater transparency and integrity across markets. Data is stored in a way that eliminates double counting while making it globally tradable and accessible.

There are already up to 22 million credits withdrawn on the blockchain. The introduction of decentralized protocols that integrate with carbon credit markets has sparked new ideas on how to create greater transparency and accountability. This is while providing pathways to meet growing demand that will drive more capital for climate-positive projects.

This is where regulators and businesses must work together to eliminate opacity and achieve a net benefit to the environment.

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Protection of Intellectual Property (IP)

Legal documents and other forms of agreements or contracts are often shared in print to ensure confidentiality and immutability.

Tokenization allows any asset to be accessible and tradable on the blockchain. Documents and other forms of data allow companies to use tokenization for greater digital security and secure data transfer.

Records on the blockchain are immutable (cannot be changed and can only be added). This offers proof in a validatable way without the need for an intermediary or notary, whether in the form of digital claims, certificates or proof of ownership.
This levels the playing field for copyright and IP management. Legal fees to establish proof of ownership in lengthy court cases can be prohibitively expensive. Singers looking to preserve the originality of their work and scientists looking to patent their technology may have an additional way to do so besides the traditional methods.

This has been experienced since 2019. Various countries and regions have different policies governing digital records in terms of being legally binding. This is constantly changing as the complex underlying technology is turned into easy-to-use applications that provide a seamless user experience.

Even traditionally conservative jurisdictions like China have begun to adopt blockchain to help legal courts deal with piracy and copyright infringement cases. Blockchain applications in business go beyond the aforementioned agriculture in emerging economies. Environment and IP protection is a great taster of the benefits it can bring.

Blockchain companies must work together with governments and regulatory bodies to find the most effective and practical ways to implement the technology. This is to dispel biased perceptions and provide proper guidelines. Only then will we have a secure and sustainable environment to help stakeholders use the applications in a meaningful way.

About the Author

crypto winter

Johannes Schweifer, CEO and co-founder of CoreLedger. He has a Master’s degree in Chemistry and a Ph.D. in Distributed Computing and Quantum Chemistry from the Technical University of Vienna. He is a passionate problem solver and builder. Johannes is known as a serial blockchain entrepreneur as he founded and co-founded several blockchain startups in Crypto Valley.

He co-founded Bitcoin Suisse AG in 2013 and created its first backbone infrastructure with banking and accounting, actively providing services until 2016. In 2017, he founded CoreLedger AG to pursue blockchain ideas beyond speculative and financial use cases. He actively uses blockchain technology to solve some of the world’s biggest challenges and shows the true value of blockchain with practical applications.

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