- Blockchain as a payment method and cryptocurrency as a money transfer tool are arguably one of the greatest technological innovations.
- Traditional payment institutions have already invested heavily in payment-focused blockchain applications such as Mastercard and Visa.
The digital asset industry has reached the limits of mainstream adoption. After spending most of his first decade on the sidelines, major institutions are now keen to help grow this emerging asset class.
Financial institutions are increasingly investing in blockchain and digital asset applications that meet the most comprehensive market suitability. This trend has increased the number of institution-related crypto and blockchain patents. New all-time high and developer activity are increasing at the same time.
tax bita company recently named a leading tax and accounting provider for the tokenized economy CB Insight, believes the industry is entering a new stage of growth. They track the rapid evolution of many new use cases for digital assets and advise organizations on translating ideas into functional systems.
In this guide, we review various real-world blockchain applications and compare their institutional support. The future of the digital asset class looks bright and the industry is on track to reach his billion user milestone.
Real-world blockchain applications and institutions to drive adoption
The value proposition of digital assets goes far beyond speculative value. Separating the hype from the facts has helped companies identify great blockchain applications that facilitate real-world activities. Learn how the world’s largest institutions are positioning themselves for the inevitable adoption of digital assets.
Cryptocurrency payments and transfers
Blockchain as a payment rail and cryptocurrency as a remittance tool are arguably one of the greatest technological innovations. Benefits include near-instant settlements and significantly lower fees than traditional systems, especially for cross-border payments.
Many consumers are already aware of the role of digital assets in payments. Estimated 6 million US residents Purchased something online using virtual currency in the past year.Meanwhile, the total transaction value of the global digital payments sector is $8.49 trillion now And it is expected to double in the next five years.
The unique characteristics of digital assets make them an exciting prospect for the global payments landscape. Traditional payment institutions are investing heavily in payments-focused blockchain applications, building custom solutions and partnering with cryptocurrency native companies to accelerate consumer adoption.
master Card (When 2.5 billion issued) When visa (When 1.8 billion cards Published) is at the forefront of such adoption initiatives. The two companies already offer card programs that allow cryptocurrency exchanges to offer crypto-backed debit cards. Card users can seamlessly use cryptocurrencies at payment points worldwide where merchants accept Visa and Mastercard.
Some of the world’s largest digital asset trading platforms, including: Binance, Coinbase, FTX, Crypto.com, It uses the infrastructure of Visa and Mastercard to deliver encrypted cards to a combined user base of hundreds of millions of customers.master card too enable banking Offer customers cryptocurrency trading through a newly launched program. This trend will accelerate consumer adoption of digital assets and bring great value to institutions allocating resources to payment-focused blockchain applications.
The Metaverse and NFT Experience
The Metaverse, a new network of interconnected, digitally enhanced experiences, is rapidly emerging as an in-demand market for blockchain applications. Innovators are using blockchain technology to enable decentralized identities that can be used across various platforms. The same underlying technology is used to create non-fungible tokens (NFTs) and cryptocurrencies. These assets allow users and creators to exchange value in the growing digital economy.
Metaverse has been dubbed $5 trillion opportunity, and many institutional investors are adjusting their investment strategies to take advantage of future growth. For example, Nike has already launched the Nikeland Metaverse on popular smartphones. roblox A platform for fans to enjoy exciting social experiences. In his first six months, Nikeland hosted 7 million users, silencing claims that the metaverse was just a passing fad.
Meanwhile, Nike also estimated $1 billion Acquisition RTFKT studiois a startup that creates NFTs for use in the metaverse. The move boosts Nike’s Metaverse play, and comes at a time when Mark Zuckerberg’s Meta is doubling down on a similar initiative.meta $10 billion invested Building the Metaverse in 2021 and continuing our main focus on dominating an emerging niche. US-based users can already share NFTs on both Facebook and Instagramthis feature will be rolled out to other countries soon.
Another company that has made a name for itself in the metaverse is the streaming video on demand (SVOD) platform. netflixPlatforms advertised in the metaverse through NFT drops Representing the artwork of the popular series “Love, Death and Robots” Blockchain applications centered around the Metaverse and NFTs will bring more exciting experiences to users and are set to take center stage in the years to come.
loyalty management industry, valued at $5.5 billion, is another niche that sees real-world blockchain applications. Blockchain offers companies a solution for tracking customer activity in a decentralized way and rewarding users based on defined loyalty goals. Brands can also create NFTs and other digital experiences to build loyalty in ways never before possible.
Coffee giant Starbucks Take advantage of this use caseStarbucks has partnered with Web3 startup Polygon Technology to launch Starbucks Odyssey. The new loyalty program improves on the current Starbucks Rewards loyalty program, allowing users to earn redeemable gift “stars” such as free drinks. A rich digital experience where customers can earn or buy collectibles issued by Starbucks. Employees, on the other hand, can receive collectibles that unlock new perks and coffee perks.
Blockchain applications solve a salient pain point facing loyalty programs. For example, blockchain transparency eliminates the possibility of users misusing the system via fake transactions or identities. It also makes loyalty programs more valuable and attractive to customers, as anyone can easily exchange rewards for other digital assets.
Accounting and tax solutions
the global accounting industry Currently rated $133 billion, US and tax preparation department It is also worth an estimated $12 billion. Another institutional-level blockchain application is bringing advanced accounting and tax solutions to the digital asset industry.
Four major accounting firms (Deloitte, Ernst & Young, PwCWhen KPMG) now have teams dedicated to blockchain and crypto to handle client requests. On-chain data provides a unique and transparent insight into an organization’s financial health, allowing auditors to accurately assess internal records.
tax bit is another leading tax and accounting solutions provider serving individuals, institutions and governments exposed to digital assets. Their platform helps clients navigate the industry’s complex accounting and tax requirements and leverage on-chain data to optimize business finance.
Due to the complexities of digital asset compliance, more companies are outsourcing their accounting to digital asset experts in the field. TaxBit and Deloitte recently strategic alliance We strive to meet this growing demand.
Blockchain’s unique value heralds a bright future for digital assets
The speculative nature of digital assets has helped drive mainstream awareness and industry growth. Yet the underlying blockchain technology has been at the forefront of mainstream consumer onboarding.
Institutions have already recognized the important role blockchain applications can play in various sectors and are increasingly adapting their investment strategies to meet market demand. Over time, the digital asset industry will grow further and reach its full potential to disrupt global finance and bring significant returns to early investors.
This content is tax bit.
Get the day’s top crypto news and insights delivered to your inbox every night. Subscribe to Blockworks’ free newsletter now.