We have come a long way since Bitcoin as a concept was introduced to the world 13 years ago. While the first generation of blockchain dealt with transfers and storage of value, the launch of ethereum and subsequent programmable blockchains opened immense possibilities, some of which are yet to be discovered.
Blockchain as a technology solution is disrupting existing landscapes and also pioneering new frontiers. While many of these disruptions are incremental improvements to their Web 2.0 precursors, the blockchain ecosystem as a whole has grown beyond the speculative realm. With the genesis of mainstream DeFi last year, many new projects & technologies have emerged as vital pieces of infrastructure for the future of Web 3.0.
In the past year, the DeFi vertical grew by 8,800% between May 2020 to May 2021 to reach a peak of USD 88 billion in TVL (total value locked). DeFi is steadily becoming a global parallel banking system with offerings like lending, borrowing, yield generation & decentralised fundraising.
The merits of such a system lie in its global accessibility, ease of use and hedge against capital destructive monetary policy outcomes such as hyperinflation & negative interest rates/deflation.
Blockchain as a technology-enabled these opportunities via digital ownership powered by distributed ledger technology. This capability of enabling digital ownership & scarcity gave birth to NFT’s (non-fungible tokens).
Digital art started taking off a few years ago, but it came with its own set of limitations. Due to lack of means of establishing ownership & providence, duplicates and imitations hindered the growth and viability of this landscape as a whole. Non-Fungible Tokens and the ERC 720/1155 standard solved these technical issues and enabled the digital collectible asset market creation.