July 25th, 2024

How Blockchain Technology Is Transitioning From Hype To Practical Applications: Report

Blockchain technology has moved beyond its peak in the innovation hype cycle, marking a significant shift over the past two to three years, according to a new report.

Global Uncertainties Shaping Innovation

The past five years have been anything but normal, marked by the global COVID-19 pandemic and escalating armed conflicts, the report by International Association for Trusted Blockchain Applications states.

These disruptions have fundamentally reshaped industrial priorities and policy agendas, particularly in the tech and IT sectors.

The energy price hikes following Russia’s invasion of Ukraine and the subsequent disruptions to global supply chains have necessitated a complete overhaul of industrial strategies.

“Blockchain technology is not at the top of the innovation hype cycle anymore, nor has it been for the last 2–3 years,” the report notes, attributing part of this shift to the cyclical nature of the industry, driven by the Bitcoin halving cycle every four years.

The Future Of Innovation

The report emphasizes that the next decade will see entire industries either thriving or struggling amid increasing cyber-criminal attacks, industrial asset threats, and a skilled labor shortage impacting hyper-automation and hyper-acceleration.

“Exponential technologies will have to deliver a lot more than parroting chatbots or meme coins,” the report states.

It argues for a thorough assessment of technological capabilities to ensure they serve as integral components of future industrial frameworks.

Blockchain’s Practical Capabilities

Blockchain technology, according to the report, offers several key capabilities: flexible transparency options, secure automation, a rich governance toolbox, strong cryptographic building blocks and efficient settlement capabilities.

These features make blockchain particularly suitable for registry use cases and enhancing sector-wide performance through gamification and new financing options.

“Blockchain technology can gamify the key performance tableau of entire sectors and bring new financing options and processes to drive efficiency across and in between industry sectors,” the report highlights.

It also points out that blockchain can enhance the resilience of infrastructures using on-chain logic and a unified tech stack.

Anndy Lian, an intergovernmental blockchain expert, praised key initiatives like EBSI, Catena-X, and DIVE for their potential to revolutionize sectors from supply chain to energy.

“The emphasis on sustainability and regulatory compliance is particularly commendable,” Lian said, adding that interoperability challenges and fostering a robust ecosystem of developers and entrepreneurs are crucial for maximizing blockchain’s impact.

Basile Maire, co-founder of D8X, emphasized the significant influence of regulatory landscapes on innovation.

“The report illustrates the transformative potential of tokenized assets in financial markets,” Maire noted, highlighting D8X’s role in this transformation by offering derivatives collateralized in tokenized yield-bearing tokens.

Michael Repetny, a core contributor at Marinade, said blockchain projects are no longer in a ‘hype’ phase.

“There are a lot more practical use cases and applicability across public and private sectors,” he said. Repetny also highlighted the role of regulatory frameworks like the EU’s MiCA in fostering growth and partnerships among blockchain projects,” he said.

Blockchain In Finance

The report underscores that blockchain has already made significant inroads into the heavily regulated finance sector.

It argues that the coming decade of exponential technologies will offer more financial leverage options, not fewer.

“It is not an echo of Silicon Valley’s techno-optimism – but if we extrapolate the trend of technological breakthroughs at various fronts, the demographic erosion of our educated workforces in the first world and our tumbling democratic foundation, then innovation is a must, not an option,” the report states.

Source: https://www.benzinga.com/markets/cryptocurrency/24/07/39891731/how-blockchain-technology-is-transitioning-from-hype-to-practical-applications-report

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

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July 1st, 2024

Tokenized Securities: A Financial Revolution or Just Hype?

Remember that scene in “The Wolf of Wall Street” where Jordan Belfort is barking orders on the trading floor? That’s the traditional world of finance – fast-paced, high-pressure, and dominated by human intuition. But what if I told you robots and video game mechanics are about to crash the party?

Enter tokenized securities. This fancy term essentially means converting traditional investments like stocks, bonds, and even real estate into digital tokens that live on a blockchain, the same technology behind cryptocurrencies. Proponents are calling it a revolutionary step forward, promising to make investing cheaper, easier, and accessible to everyone. Sounds too good to be true, right? Well, I’m here to tell you it’s a mixed bag.

The Tokenized Dream: Lower Costs, Faster Trades, and Global Investors

Imagine a world where you can buy a fraction of a million-dollar mansion in Miami or invest in a hot startup with just a few clicks on your phone. That’s the promise of tokenization. By cutting out middlemen and leveraging the magic of blockchain, the theory goes that tokenized securities will be cheaper to trade, settle faster, and be accessible 24/7 to a global pool of investors. Sounds pretty darn convenient, doesn’t it?

Hold Your Horses: The Not-So-Glittering Side

Before you pack your bags and head to Wall Street to become a crypto-millionaire, let’s get real. Tokenization isn’t a magic bullet. While it might eliminate some fees, it also creates new ones. Building a secure and compliant platform for tokenizing your assets can be a hefty upfront cost. Plus, there’s the ongoing expense of cybersecurity, legal compliance, and maintaining the platform itself. Think of it like building a fancy new house – sure, it’s beautiful, but the upkeep can be a real pain.

Traditional Listing vs. Tokenization: A Cost Showdown

So, how does tokenization stack up against the traditional listing route, like going public on the NYSE? Traditional listings come with their own set of hefty fees, including underwriting, compliance, and listing costs. An IPO (Initial Public Offering) can easily set you back millions, not to mention ongoing compliance headaches.

On the other hand, tokenization could potentially slash some of these costs. Remember that 24/7 access and the potential for a global investor base? That can translate to lower transaction fees and more liquidity, meaning it’s easier to buy and sell your tokens. But here’s the catch: those savings might be eaten up by the costs of robust cybersecurity and navigating a constantly evolving regulatory landscape. It’s like playing a game with ever-changing rules.

Not All Companies Are Created Equal: Who Benefits Most from Tokenization?

Just like shoes, tokenization isn’t a one-size-fits-all solution. Let’s break it down by business type:

Startups and Small Businesses: Struggling to get funding through traditional channels? Tokenization might be your knight in shining armor. It provides an alternative way to raise capital by tapping into a global pool of investors, even for those without a Wall Street pedigree. Plus, you can offer fractional ownership, meaning even small-time investors can get a piece of the action. Think of it like crowdfunding on steroids.
Real Estate and Private Equity: Ever wanted to own a piece of the Eiffel Tower, but the price tag is a bit out of your league? Tokenization can make that dream a reality. By tokenizing real estate assets, companies can offer fractional ownership, making high-value properties accessible to a wider range of investors. It’s like buying a slice of that fancy cake you’ve been eyeing, instead of having to purchase the whole thing.
Niche Markets and Specialized Assets: Got a one-of-a-kind painting or a rare baseball card collecting dust in your attic? Tokenization can unlock its value and attract a broader investor base. It allows for fractional ownership and secondary market trading of unique assets that would otherwise be difficult to sell. Think of it like turning your collectibles into digital trading cards, with a much bigger marketplace.

The Case of Real Estate Tokenization: Not All Properties Are Created Equal

Real estate often gets touted as a prime candidate for tokenization, but hold on a sec. Not every property is a good fit. Imagine trying to sell a fixer-upper in a bad neighborhood through fancy tokens. It wouldn’t work, would it? The same goes for tokenized real estate. Regulatory hurdles, the quality of the underlying asset, and market dynamics all play a crucial role.

Quality of the Asset: Tokenizing a run-down building won’t magically transform it into a prime investment. Investors aren’t lining up to buy tokens for a property with low occupancy rates, structural issues, or a terrible location. Just like a house needs a good foundation, tokenized real estate needs strong underlying assets to be successful.
Market Dynamics: Remember that global pool of investors we talked about earlier? Well, for tokenized real estate to truly be liquid (meaning easy to buy and sell), there needs to be a critical mass of participants in the market. Imagine a cool new game with no players – not much fun, right? The same goes for tokenized real estate. Without enough buyers and sellers, the tokens can become illiquid, defeating the purpose of easier investment. Plus, convincing everyone that tokenized real estate is a good investment takes time.
Regulatory Hurdles: Real estate is a heavily regulated industry, and tokenization adds another layer of complexity. Different jurisdictions have varying rules and compliance requirements. Imagine navigating a maze with ever-changing walls – that’s what companies trying to tokenize real estate face. These legal headaches can be expensive and time-consuming, potentially outweighing the cost benefits of tokenization.

So, Should You Ditch Traditional Listing and Go All-In on Tokenization?

Not so fast! While tokenization offers exciting possibilities, it’s not a silver bullet. The effectiveness and cost-efficiency depend on various factors. For companies in heavily regulated industries or with complex assets, traditional listing might still be the safer bet. Think of it like a tried-and-true recipe – it might not be flashy, but you know it’ll deliver delicious results.

On the other hand, for innovative startups, tech companies, and businesses with unique assets, tokenization presents a compelling alternative. The ability to tap into a global investor pool, offer fractional ownership, and potentially increase liquidity can be significant advantages. But remember, these benefits come with the responsibility of building and maintaining a secure and compliant platform.

The Bottom Line: Tokenization – A Promising Future, But Do Your Homework

Tokenization has the potential to be a game-changer, but it’s not a one-size-fits-all solution. Companies considering tokenization need to carefully assess the feasibility and potential benefits for their specific situation. Just like you wouldn’t jump into a swimming pool without knowing how deep it is, don’t dive headfirst into tokenization without doing your due diligence.

The future of finance is likely to see a blend of traditional and tokenized approaches. As regulations evolve and technology advances, tokenization’s potential to complement or even disrupt traditional financial mechanisms will become clearer. This will allow companies to make more informed and strategic decisions about how to raise capital and attract investors. So, buckle up, because the future of finance is about to get a whole lot more interesting!

Source: https://wishu.io/tokenized-securities-a-financial-revolution-or-just-hype/

Anndy Lian

www.anndy.com

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June 28th, 2024

Interview/Anndy Lian – The Future of Crypto Airdrops: Hype or Hope?

From Bitcoin’s humble beginnings – where free coins were given away to early adopters – to today’s multi-million dollar airdrop extravaganzas, the landscape of crypto giveaways has transformed dramatically. As the industry matures, we’re left with critical questions about the long-term viability and ethical implications of these events.

To get a handle on these complex issues, we turned to Anndy Lian, a leading voice in the blockchain world. As an intergovernmental expert, best-selling author, investor, board member, and sought-after speaker, Lian brings a wealth of knowledge and a unique perspective to the table. His insights into the evolving world of crypto airdrops are both compelling and thought-provoking.

The Shib: What is the most significant impact airdrops have had on the crypto industry thus far?

Lian: In my opinion, it’s Notcoin. They are very decentralized. No VC. Well distributed.

The Shib: Do you believe airdrops are a sustainable and ethical method for wealth distribution or primarily a marketing tactic?

Lian: I think it is a sustainable and ethical marketing strategy that can help gather users in the beginning.

The Shib: What are the potential risks and downsides associated with airdrops for both projects and participants?

Lian: Distributing free tokens can lead to an oversupply in the market, potentially diluting the value of the tokens.

The Shib: How can projects ensure that their airdrops genuinely benefit the community and align with their long-term goals?

Lian: Be transparent about the eligibility criteria for the airdrop. This helps set clear expectations and fosters trust within the community.

The Shib: What regulatory challenges or concerns might arise from the increasing popularity of airdrops?

Lian: There is significant uncertainty regarding the tax treatment of airdropped tokens. Tax authorities in various countries have different guidelines on how to treat these tokens, which can complicate compliance for recipients.

The Shib: How do airdrops influence investment decisions, and what factors should investors consider when evaluating airdropped tokens?

Lian: Evaluate the long-term viability of the project behind the airdrop. A strong project with clear goals is more likely to succeed.

The Shib: What are the red flags or warning signs that investors should look for in airdrops that might indicate potential scams or unsustainable projects?

Lian: Scammers often provide limited or vague project details. A legitimate project should have a well-documented whitepaper, clear information about the team, and token distribution. The one thing I hate is that some scammy projects can “give birth” to new tokens from unknown wallets.

The Shib: How do you think the rise of airdrops has impacted the broader crypto market and investor sentiment?

Lian: Airdrops are never negative. Receiving free tokens can bolster investor confidence. It creates a positive sentiment as investors feel rewarded and may become more active in the crypto space.

The Shib: What long-term trends do you see emerging in the airdrop space, and how might they shape the future of crypto investing?

Lian: One recommendation is that projects should stop using bad middlemen to do their airdrops. They should find good platforms that are really sending the free tokens to the right target audiences. A shift from broad, public airdrops to more targeted distributions aimed at rewarding early adopters and significant contributors to the project.

The Shib: What advice would you give to other projects considering an airdrop as a way to engage their community and distribute tokens?

Lian: Do your math properly.

Crypto airdrops remain a powerful tool for both project growth and individual enrichment. But as the space becomes more sophisticated, so too do the strategies of both legitimate projects and opportunistic scammers. Lian’s insights underscore the importance of informed decision-making, careful risk assessment, and a focus on long-term value over short-term hype. Airdrops can be a part of a balanced crypto portfolio, but they should not be the sole focus of any serious investor.

Source: https://news.shib.io/2024/06/26/interview-anndy-lian-the-future-of-crypto-airdrops-hype-or-hope/