The world of cryptocurrency saw a flurry of activity on the second day of Consensus 2021. Experts and enthusiasts alike converged to discuss the latest developments and ideas in the space, and among them were three particularly interesting ones that are worth exploring further.
Firstly, there was the idea of using blockchain to combat climate change. It’s no secret that the energy consumption of cryptocurrencies, particularly Bitcoin, has come under intense scrutiny in recent years. With transactions requiring huge amounts of computing power, the carbon footprint associated with these activities is considerable. However, some have argued that blockchain technology could actually be used to create more sustainable solutions to combat climate change.
One suggestion proposed at Consensus was to create a blockchain-based platform that incentivizes the reduction of carbon emissions. This could work by offering rewards to companies that take steps to reduce their carbon footprint, such as by investing in renewable energy or implementing more efficient processes. These rewards could be in the form of cryptocurrency, which would be distributed via a decentralized network, thereby removing the need for a central authority.
The second idea that caught our attention was the potential for crypto to disrupt the traditional art market. This is a particularly exciting prospect given the enormous size of the art industry, which is estimated to be worth over $65 billion. The traditional art market is notoriously opaque, with much of the buying and selling of art taking place behind closed doors.
However, blockchain technology has the potential to make the art market more transparent and accessible to a wider range of participants. By using blockchain to create a digital record of art ownership, it becomes easier to prove authenticity and provenance, which are key considerations for buyers. Moreover, by using cryptocurrencies to facilitate transactions, it becomes possible to eliminate the need for intermediaries such as auction houses and dealers, thereby reducing costs and increasing efficiency.
The third and final idea that we’ll discuss is the possibility of creating a decentralized version of Amazon. E-commerce is another industry that is ripe for disruption, and with traditional platforms such as Amazon and eBay facing criticism for their business practices, there has been growing interest in alternative models.
The proposal put forward at Consensus involved the creation of a decentralized e-commerce platform that would be powered by cryptocurrency. Similar to the concept of a decentralized autonomous organization (DAO), this platform would be owned and operated by its users, who would have a say in key decisions such as product listings and pricing. By eliminating the need for a central authority and moving towards a more community-driven model, this platform could potentially offer a more equitable and democratic approach to e-commerce.
In conclusion, Consensus 2021 offered up some truly giga-brained ideas for the future of cryptocurrency and blockchain. Using blockchain to combat climate change, disrupting the traditional art market, and creating a decentralized version of Amazon are just a few of the possibilities that are being explored. As the industry continues to evolve, it will be fascinating to see which of these ideas come to fruition and what other innovations emerge.
The second day of the Consensus event produced a range of fascinating ideas and perspectives, and prompts the largest cryptocurrency gathering to date to interpret some of the most important topics currently affecting the currency markets. With technology, regulation and investor confidence trends ruling crypto this year, here are three ‘giga-brained’ ideas from day two of Consensus.
1. Blockchain technology used to track and build stronger supply chains
A hot topic in recent years is the application of blockchain to the supply chain management through the creation of transparent technologies that record vital information for monitoring production and sales. Overstock CEO, Patrick Byrne, predicted Blockchain technology will see “massive deployment” within the supply chain of large multinational corporations within the year. Byrne says the creation of “triple-entry crypto accounting” will facilitate a massive expansion of transparency throughout the supply chain.
2. Use of regulatory sandboxes to build safer environments for start-ups
Another key topic is the issue of regulatory compliance for entrepreneurs that seek to launch new blockchain and cryptocurrency ventures. Many of these start-ups face considerable difficulties in obtaining legal validity due to their innovative use of the blockchain. This has created a push for regulatory sandboxes – environments where start-ups can experiment with their blockchain solution without fear of legal repercussions. Financial services company, PwC, released a report that detailed how regulatory sandboxes won’t only benefit start-ups but the broader financial market by providing a constructive way to ensure innovation policy is both data-driven and forward-thinking.
3. “Crypto-regulating Bitcoin” could lead to a more positive future
A looming threat to cryptocurrency growth is regulation, but it poses a challenging question: how difficult will it be to apply regulation to a decentralised ecosystem? Nicholas Weaver, a computer science professor at the University of California Berkeley, suggests that “crypto-regulating bitcoin is a good-thing”, saying that industrial scale mining and other disruptive behaviours put the currency’s decentralisation at risk. He adds that national governments should not shy away from the responsibility to verify and reinforce the cryptocurrency system if it wants to continue to grow and reach its full potential.
As the second day of Consensus comes to an end, one of the most important takeaways is that the cryptocurrency space is experiencing a structural shift. With the need for regulation and the desire to innovate through the integration of blockchain technology in both enterprise and consumer spaces, the cryptocurrency space looks set to become a far more supervised and coordinated industry. The time for companies to stay informed and engage in this meaningful shift in the markets is officially here.