Crypto Brainchild: Blockchain’s Core Benefit Of Decentralization Is A Bigger Adjustment For Non-Financial Apps
Non-Financial Blockchains Are A Harder Sell, Says Buterin
A quick glance at the headlines from the last few years will show that while blockchain has been used by several industries, one of its biggest fans is the financial industry. From JP Morgan launching their own crypto to the endless applications that are being used by banks, it is clear that finance loves Blockchain.
One of the possible reason for this is the fact that blockchain’s most famous product is Cryptocurrency, which ties into finance directly. It could also be a result of the money being made and managed through Blockchain that attracted the finance industry.
Buterin Buttresses The Point
While the support for blockchain from the finance industry has been instrumental in helping the industry grow, it has also created a situation in which Blockchain products that aren’t related to the finance industry have struggled to gain traction and similar levels of investment.
This is touched On by Ethereum co-founder Vitalik Buterin at Token 2049 in Hong Kong on March 13.
According to him, while other Blockchain applications are legitimate in their own right, financial applications will likely be the first to achieve worldwide adoption.
“The problem is that decentralization is basically their value add. With finance, you’re competing with banks that take five days to do something interesting. With anything that’s not financial, chances are there is some internet thing that does what you want, that’s just centralized. So it’s a bit of a harder pitch,” he said.
Some of the more underrated blockchain applications that were touched in by Buterin include digital identity, reputation, and digital certificates. These, he says, have possible use outsider the finance industry and crypto itself but are a harder sell.
During his talk, he asked members of the audience to name some applications of Blockchain that taking off in the real world and not just on paper. Among some of the answers were micro-insurance, non-fungible tokens, and gaming.
He went to explain that while all those that were mentioned were valuable, an application like gaming would likely be the one to gain the largest audience.
This highlights a problem within the larger market where very innovative Blockchain products get overlooked for the more popular ones which, if left unchecked, could lead to us losing out on very great opportunities. It could also happen that while financial applications of Blockchain are getting more popular, some of that attention will trickle down to other non-financial applications.