Are you a blockchain developer looking for the next big idea? Here are 6 massive opportunities that can not only save users billions in lost fees but also usher in a new era of global cryptocurrency adoption . Read On-
- On and Off Fiat Ramps for Cross Border Payments :
Every year, over $600 Billion is sent across borders by millions of expatriates to their families back home. China, India, Philippines and Mexico are the biggest receivers of remittances, accounting for over a third of this figure. At an average fee rate of well over 5%, service providers like Western Union, Paypal and Banks have combined to share over $30 Billion in revenues from these transactions — just for moving money across borders. Should it really cost $50 to send $1000, when
Users in developing countries are at the receiving end of this harsh and antediluvian system, as they have to often wait weeks to see their money and deal with red tape. The current remittance systems are not only expensive but broken in many places for users.
While some blockchain payments cost less than a cent and settle instantly, building on and off fiat ramps remains an unsolved problem in many jurisdictions due to various regulatory and technical challenges.
Developing local fiat ramps by working through these challenges is the final piece of the remittance puzzle. These ramps can not only enable decentralized blockchain based payments but will also help workers around the world save Billions of Dollars from Corporations running on ancient systems like SWIFT.
Can developers and entrepreneurs combine to craft a solution to achieve the UNDP 2030 Sustainable Development Goal of 3% average Remittance Fees?
2. Blockchain Gaming Payment System
The gaming industry made sales of $135 Billion last year and with internet penetration increasingly sharply in the Developing World — things are headed in only one direction. With the rise of Massivle Multiplayer Online Role Playing Games like Fortnite and PUBG, the Gaming Industry is blurring international borders in the Virtual World moving gamers to a one world market.
Despite stunning growth, gaming companies still have to rely on integrating with hundreds of creaky, old-world payment systems to ensure their users are able to use at least one to make in-app purchases. The patchwork of these systems can suffer from high failure rates and a sub-par UX — leaving millions of users frustrated.
Blockchain Payments are the obvious choice for solving a big part of this pain point and enabling one-platform global payments. With a fast, secure and low-cost blockchain platform, payments can not only become much smoother but failure rates can be controlled and transaction fees undercut, improving the user experience and opening up the industry to competition.
The Gaming Industry is ripe for disruption and there just might be a Billion Dollar Chicken Dinner for this Winner!
3. Decentralized Stablecoin for Ravaged Economies
Imagine if you walk into a convenience store and find out that a can of soda suddenly costs $150 and a sandwich will set you back by $550. Confused, you walk into the next store and find out that same soda is now $175 and the sandwich costs $700. By the time you figure out what’s going on, the soda is now $100,000 and there is little you can do about it.
While this is unlikely to happen anytime soon in the United States, citizens across many nations like Zimbabwe and Venezuela have faced this crazier-than-fiction dystopia with their currencies experiencing over 10000% inflation, effectively rendering the currency worthless overnight. Imagine losing all your savings in a matter of days.
While blockchain currencies can inherently be volatile, building an effective stablecoin solution on a secure and decentralized cryptocurrency platform can help citizens across the world protect their assets from irresponsible governance and thieving politicians.
While there have been some initial solutions offered by centralized blockchains — they suffer from the same frailties as fiat currencies. All of these factors make decentralized stablecoins an intriguing problem worth solving.
4. Blockchain POS : Saving Merchants from “Friendly Fraud”
In 2018, US Merchants lost over $4.4B to Chargeback Fraud. This is a simple scam where the fraudster is the actual owner of the Credit Card used to make a transaction.
The Modus Operandi of this fraud is straightforward. First the fraudster makes a normal transaction with his card for a digital or a physical product. Then, after receiving the product or service, the fraudster claims that they did not receive the product/service or that their card got stolen and someone else made the transaction.
More often than not, the transaction amount is charged back to the merchant. In addition, they can be hit with a wide gamut of fees and charges — further incurring them costs that can amount to over $1.40 on every dollar already lost.
While it is incumbent upon Card Companies to investigate the cause of chargebacks, they usually transfer all liability on merchants, incurring them severe financial penalties for no cause. The merchants have pushed back hard but in the absence of alternative payment mechanisms, merchants are forced to keep paying with their profits.
The Blockchain can help fix this problem. On certain blockchain platforms, you are your own bank and transactions are irreversible. Period. Merchants cannot lose any money due to chargebacks and transactions once made cannot be reversed.
A robust POS system for Merchants Worldwide can not only help protect them from chargeback fraud, but also help them accept payments from anywhere in the world — with lower fees!
While are are some great initial solutions — the problem of effecting mass adoption remains unsolved. There is gap in the market for Retail POS software and a well designed system that addresses challenges facing might just do the trick.
5. Supporting Content Creators With Micro-Payments
It is no secret that platforms like Google and Facebook shortchange content creators — utilizing their vast networks and privileged position to charge unsustainable commissions from content creators.
Facing lack of credible alternatives, creators have to make do with less than half of what their content brings in — making quality content creation a largely underpaying business. By one estimate, only 3.5% content creators make enough to cross the Federal Poverty Line, such is the dire situation under centralized control.
While a number of quality publications have bucked the trend and developed new media models, most content creators are forced to use these media giants to monetize their content.
While on the other side, the median user is manipulated to get hooked on to the unheady cocktail of sub-par clickbait articles over advertising, which rules the roost on mass platforms.
The blockchain can restore the balance back in favour of consumers and creators by building a direct connect between them, without involving the “advertising middlemen”. Some Blockchain Payment Systems can even support $1 micropayment transactions with less than 1% in effective fees — opening doors to a worldwide paying audience.
While there has been some appreciable work in this direction, a truly global platform that enables users to directly financially support their favourite creators on the decentralized blockchain remains elusive.
Content Distribution is one of the biggest industries on earth. Building a platform to facilitate responsible content monetization can empower creators to take their craft to the next level — and save us all from spammy ads and clickbait content.
6. Payments for Freelancers and Digital Nomads
Have you ever tried to get paid as a freelancer from an employer in a foreign country? For a growing number of workers worldwide, this is a weekly or a monthly occurrence today and they are clearly not happy.
Not only do Freelancers often need to wait weeks for their payments, they get badly shortchanged on fees by every intermediary possible. If they use a freelancing platform like Fiverr, the costs can be as high as 20%.
Any way you slice it — Remote Working is one of the major millennial trends worldwide and the future of digital corporations of the future. Nearly one in two workers is going to become a freelancer by 2020, if current trends persist.
Not only is remote work more sustainable but it significantly boosts productivity for employees and business owners world-wide, which is fuelling this trend. What’s more, remote work also helps overcome skill gaps in businesses across the world and makes them significantly more competitive.
While the Freelancing Industry has thrived, the backend payments infrastructure for the remote work industry has failed to keep pace with the burgeoning growth. It is still a cumbersome process to send and receive wage payments across countries and anyone who has ever received an overseas wage can relate to the painful experience of filling multiple forms and suffer from arbitrarily frozen funds.
With the advent of the blockchain, developers around the world have the tools to reimagine the future of digital work and make lives simpler for the next wave of digital workers.
The Dash Developer Program supports developers working on novel ideas. If you are a blockchain developer working on any of the ideas listed above or know someone who is — we would love to hear from you.
We are offering Free Technical and Marketing Support to Developers building consumer facing blockchain applications and helping make the world a better place. Contact us on Developers@BuildWithDash.Com or Reach Out to us on Twitter.com/buildwithdash to discuss your app with us.