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By Laurence Latimer, CEO and Co-Founder, Dinara
As crypto enters a growth cycle and we see the market cap rise, mainstream adoption is back in the conversation. Those building in crypto understand that this generational opportunity is about the long-term and creating a new ecosystem of value exchange that is seamless, secure, and integrated into the everyday experiences of individuals.
Much like the early days of the internet, we are only just starting to understand the possibilities of this nascent technology and how it will be applied across various industry sectors. There were not many people who believed early prognosticators who, in the 1990s and early 2000s, forecasted how the internet would fundamentally change societal interactions. The crypto industry faces similar nay sayers today.
If you look past the headlines, there are an array of new use cases being deployed or developed that deliver enhanced value for businesses and consumers. Below, I outline several real-world use cases where we are seeing the most impact across various sectors.
Gaming: A New Paradigm of Play
The global gaming market is estimated to reach $689 billion by 2030. The industry was greatly accelerated during the pandemic and innovation is keeping pace. Sony recently filed a patent for super-fungible gaming tokens that would be stored on a distributed ledger and Pallet Exchange is building a new NFT marketplace based on user retention.
In this new era, players don’t just play games, they make purchases within the platform, create and build new worlds, and ultimately, will own a part of what they create.
Crypto enables the creation of in-game assets that can be truly owned, traded, and leveraged by players outside the game environment, creating a vibrant economy that rewards engagement and skill. This not only enhances the gaming experience but also democratizes the value generation process, allowing players to earn real-world value through their in-game activities.
Treasury: Revolutionizing Corporate Finance
For businesses, crypto introduces a new era of treasury management. One of our partners, Bitwave, shared in a recent article that 15,000 companies are now accepting crypto as a form of payment. After introducing PYUSD in August 2023, PayPal is now in the early stages of promoting its usage across its network of 10s of millions of merchants. Examples like these present both opportunities and challenges for CFOs.
With tokenized treasuries, companies can hold diversified assets on their balance sheet, including digital assets, providing new avenues for FX management, yield generation, and investment. This shift enables more dynamic and responsive treasury strategies that can protect against inflation, reduce exposure to fiat currency risks, and increase operational efficiencies at a lower cost.
Payments: Dramatically reducing costs and complexity
There has been significant innovation in the payments space over the last decade. By leveraging blockchain technology, cryptocurrencies provide a decentralized platform for transactions, meaning that payments can be processed without the need for a central authority like a bank. This not only accelerates the transaction process, allowing for near-instantaneous transfers even across borders, but also enhances security. Each transaction is encrypted and recorded on a blockchain, making it virtually tamper-proof and ensuring a high level of transparency and trust among users. Furthermore, cryptocurrencies can significantly reduce transaction fees, as the decentralized nature of blockchain eliminates the need for intermediaries that typically charge for their services.
Digital wallets are now mainstream and we are seeing greater adoption of Web3 wallets in order to facilitate payments. In Singapore, Grab users can now make payments in crypto and Bitget just scaled to 20 million users. I believe we are just at the start of this new wave as more and more businesses globally see the growth benefits of using a decentralized network.
Tokenized Real-World Assets: Fueling New Economic Opportunities
Crypto facilitates the tokenization of real-world assets (RWA), from real estate to art, making it easier to invest, trade, and manage these assets. This democratizes access to investment opportunities that were previously only available to those who could pay a large amount, offering a new way to diversify investment portfolios and unlock the intrinsic value of physical assets through digital platforms. For example, Candy Digital is a digital collectible company that offers NFTs for fans and collectors. Their CEO shared in a recent interview that they expect to onboard 100,000 new customers to the platform this year through their digital ticketing product.
In the world of collectibles, from baseball cards to comic books, crypto is introducing a new era of digital ownership and provenance. Tokenization transforms physical assets into digital tokens, ensuring authenticity, simplifying the trading process, and potentially broadening the market for rare and sought-after items. This has the potential to enhance the value and liquidity of collectibles while also creating a more transparent and secure market.
This increased liquidity is a net positive for global financial markets. It not only stimulates the movement of capital and investment but also promotes economic growth and innovation by guaranteeing that capital remains dynamic, being effectively utilized in various sectors for productive purposes.
Loyalty Management and NFTs: Engaging Consumers on a New Level
In the realm of loyalty management, brands like Louis Vuitton and Nike are already exploring how non-fungible tokens (NFTs) can create new forms of engagement and value for customers. The Dallas Mavericks even turned their tickets and other collectibles into NFTs for fan engagement. NFTs offer a unique way to reward loyalty, with digital assets that can appreciate in value, be traded, or unlock exclusive experiences, redefining what it means to be a brand loyalist.
By leveraging NFTs, brands can transform their marketing and loyalty strategies into immersive, interactive experiences that resonate on a personal level with consumers, paving the way for a future where digital and physical brand experiences blend seamlessly.
What’s Next
Beyond transactions and investments, crypto can facilitate a wide range of activities—from purchasing your morning coffee to unlocking unique gaming experiences and even revolutionizing how we manage digital identities and assets. As we continue to see further mainstream adoption, the mindset around crypto will continue to evolve and we will see exponential use cases emerge.
I personally am excited about how the innovative potential of crypto and blockchain technology is spurring a wave of creativity and entrepreneurship. These advancements are not just creating new economic opportunities but are also addressing some of the most pressing challenges of our time. This revolution is not just about delivering new financial solutions but the long-term potential to build a more inclusive, transparent, and efficient future.
Author Bio
Laurence is co-founder and CEO of Dinara, a startup that is reimagining enterprise financial services for crypto businesses. Laurence built a career identifying, building, and scaling new businesses and led growth initiatives and new market entry in the U.S., Asia, Latin America, and Sub-Saharan Africa. He spent over four years at SunGard (acquired by FIS) where, in his last role, Laurence was GM of an enterprise software and data solutions business serving capital markets firms across the Americas. He launched in two countries and was responsible for a global workforce in the US, Brazil, Hong Kong, India, and Tunisia.
Earlier in his career, Laurence held senior product, operations, and business roles at several venture-backed and bootstrapped startups. He began his post-graduate career as a consultant at McKinsey & Company. Laurence is a co-founder and co-chair of the Princeton Alumni Angels of Greater NY, and an advisor to the Catalytic Impact Foundation. In addition, he has been an angel investor for over ten years and advises several early-stage startups.
Laurence earned a master’s degree from Princeton University's School of Public and International Affairs where he was a public policy and international affairs fellow and a bachelor's degree from The Ohio State University. Laurence is a Fellow of the 2019 class of the Aspen Finance Leaders Fellowship and a member of the Aspen Global Leadership Network. He was raised and currently resides in Brooklyn, NY with his wife and two sons.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.