Over the last 20 years or so, companies all around the world have witnessed immense changes that have impacted their ecosystem to the very core. If you think that’s a tad bit overdramatic, you might want to take a look at the facts for yourself. You know how everything is online nowadays, it wasn’t always like and it might be slightly difficult to remember a time when you couldn’t just swipe or click everything to your doorstep. After the Internet made it big, a lot of companies jumped on the bandwagon to build large online market places, establishing a connection between the buyers and sellers like never before. This too was a person-to-person (P2P) marketplace however; a centralized company ran all the market places.
Enter the era of blockchain technology, and almost every industry is ready to enter the whole decentralized game, but the question is, does every industry actually need it? It is possible that some industries are faring off just fine without decentralization in the way.
On the other hand there are actually quiet a lot of markets that are better truly decentralized. And while this list is likely to extend as the whole blockchain and crypto ecosystem matures, for now here are five markets, which the crypto decentralization can improve.
As of now capital markets around the world aren’t global in the true sense, as borders restrict them to a particular region. It is a fact that a substantial majority of the population around the globe doesn’t have access to U.S. capital markets, owing to the frictions caused by KYC, broker/dealer and banking frictions that are involved. Through the distributed ledger technology, capital markets have the potential to become truly global and accessible to anyone, anywhere around the globe. There are open finance tools like Augur, 0x, Dharma, to name a few that are truly global and permissionless. Leveraging these tools, people have also created derivatives, such as Primotif, for the purpose of allowing global access.
Those markets that are a recent innovation and are hampered by rather unnecessary regulations can make use of DLT to overcome these challenges. Uber serves as a fit example of this. Initially it was declared illegal in most of the cities owing to the outdated taxi laws. But governments around the world quickly realized its genius and adjusted accordingly. The most obvious grey market that can benefit from the revolutionary technology is the prediction market. Blockchain powered platforms like Augur and Gnosis are providing just the opportunity.
Initially people used to be unsure about the whole prospect of online gambling, however now market participants tend to display more trust on the online casinos as opposed to the traditional ones. Through the random number generator (RNG), people can be sure that nothing is preplanned; they can even validate the integrity of the RNG in realtime via blockchains.
Virtual Real Estate
The virtual world that have been created as a result of the blockchain technology serve as another example, as most of them like Decentraland have fixed amounts of real estate. Other virtual worlds offer to their users other cryptographically unique digital assets. But of course not everyone will appreciate a one-of-a-kind virtual sword, as a gaming geek would. However, with real estate it could become valuable if players want to spend time in that virtual world.
Labor Market Places
Often labor markets fail to keep up with the demand and supply because of the regulatory frameworks, and that is exactly why this market is ripe for decentralization. Aragon is one such blockchain platform that is building the technical frameworks, which will allow for the permissionless creation of smart-contract defined organizations that support any conceivable rule sets.