Digital Goods and StableCoins will be the two killer apps of Blockchain according to poll
A few days ago, I asked the Advanced Trading Group (ACAT) on Facebook what people thought would be the killer apps of BlockChain. This is by far the most sophisticated / largest discussion group on crypto, with 8,000+ members.
The results came in and they were decisive:
- Digital Goods / NFTs and especially for in-game items
- Stable coins for p-p payments and remittances
It’s important to stress that neither of these play a significant part in today’s blockchain eco system. But both of them are areas where a LOT is happening.
Digital Goods are still very much a work in progress. The first iteration of non-fungible tokens, ERC 721 is mainly known for the crypto-kitties craze in 2017. At one point these digital cats represented a majority of all traffic on Ethereum. But no more. The craze has come and gone, and many regard crypto kitties as just another fad.
So why the interest? I would say it’s largely because of rumbling around Mythical Games and the new EOS dGoods standard, as well as the success of WAX in dGoods trading. Both of these efforts are leaning in on the idea of taking digital goods out from within games like Fortnite, and allowing them to be traded amongst gamers.
EOS Lynx is closely involved in these efforts, and we think enormous things will come out of this in the second half of 2019, with games at the forefront, but possible applications in tickets as well.
The key here is that these new goods represent a major differentiator versus existing use cases. This is not just a new form of currency — it’s a new way to trade ownership in digital goods.
The second major effort that everybody is talking about is mainstream stable coins. This is still very early, but it appears like it will explode in 2019.
Other than Tether (USDT) which is under investigation by the state of NY for an 800MM “hole” in its balance sheet, the three largest StableCoins are
- USDC (300MM market cap)
- Maker Dai (80MM).
- TrueUSD (80MM)
These currently represent less than 0.5% of the total 150 Billion crypto market cap. However this is also likely to change in a big way:
Facebook’s Libra project
It is no secret that Facebook has a very large group working on a StableCoin network project. This was initially intended to just be for remittances in India, but it now appears to be much bigger. And while Facebook has had its share of failures (remember Facebook Phone), the smart money is betting they will succeed. This could be a complete game changer as far as crypto adoption, and it could be inside of 12 months.
JPM Coin + IBM WorldWire
JP Morgan is working on a B-B StableCoin for financial partners (banks) as a way to re-invent ACH / Swift and get cross border payments down from 3+ days to minutes. This is on a 12–24 month time frame. A very similar effort from IBM in collaboration with Stellar is also targeting cross border.
Between Facebook, JPM, and IBM lots is brewing in the StableCoin world. It truly appears like StableCoins will replace much of the world’s rusty financial pluming. The consequences for consumers are immense, as these StableCoins will eventually be integrated into programatic apps.
Other actual uses of crypto today include as a store of value (Bitcoin), for Gambling (high proportion of current EOS and Tron dapps), and Privacy (Monero). Raising money (ICOs and Securities Token) is currently not viewed by many as a key use case, for regulatory reasons.