Widespread Adoption of Blockchain Technology and the Emergence of Decentralization of Services (DoS) Industry
The Decentralization of Services (DoS) implements Blockchain technology, specifically Tokens, to dis-intermediate traditional intermediary services for businesses. It lowers dependencies on third-party services for transaction settlements and enables businesses to deliver more value to end-users.
The Wave of New Tokens and DoS
The emerging DoS Industry is the new wave of Token-based businesses attempting to compete with existing players in the market. By leveraging Blockchain, new entrants propose to deliver identical services, but with lower fees, near real-time settlements, and more value deliverable to ecosystem participants.
The emergence of the DoS Industry was made possible with the creation of Bitcoin, and the core Distributed Ledger Technology behind its currency component. However, the large influx of DoS platforms is mainly attributed to the open release of Smart Contracts and Token creation capabilities from the Ethereum Foundation.
Blockchain Industry and Identifying Sub-Industries
The DoS Industry is one of many sub-industries under the Blockchain Industry. A broad classification of Blockchain sub-industries is given below.
Blockchain Science & Tech Industry
Industry dedicated to advancing Blockchain Technology (e.g. Ethereum, Hyperledger, Cosmos, RSK, MaidSafe) and the implementation of Enterprise Blockchain solutions (e.g. Samsung SDS Nexledger)
Blockchain Finance & Banking Industry
Industry dedicated to replacing traditional Banking Sector (e.g. Binance, Bankera) and to supplement conventional investing methods (e.g. Atlant, SwissBorg)
Blockchain DoS Industry
Industry dedicated to replacing various non-financial business models and processes (e.g. Musicoin, Experty)
DoS is a specific sub-industry under the Blockchain Industry, which is expected to be the fastest to be adopted widespread, and with the least regulatory concerns for rapid global expansion. Tokens used in the DoS Industry are Utility Tokens and not Financial or Network| Protocol types.
It may be obvious why Financial Tokens are not a part of DoS. But non-service based Protocol and Network Tokens are excluded because they provide no utility for the common user. Despite their usage and work functions, Protocol and Network Tokens may be perceived as a form of investment by policymakers and face some form of resistance.
Quick Glance at Tokens that are NOT DoS
The following are not applicable characteristics for DoS. This list does not infer the likelihood of success or adoption of other types of Tokens.
- Valuation restrictions: Asset-backed Tokens where the value is tied to physical goods, real estate, commodities, fiat money, Cryptocurrencies, and etc.
- Function restrictions: Tokens related to banking, lending, dividends, interest, P2P financing, debit card, credit card, credits, funds, investing, crowdfunding, ICO launching, profit sharing, Equity-like and etc.
- Long-run feasibility restrictions: Deflationary models that encourage upward price valuation including Burning, Buy Back, and etc. Other types of short-term business models including, but not limited to, Cryptocurrency Mining and purchase of processing power for Mining
- Protocol | Network restrictions: new Ethereum or new Bitcoin
The Future of Utility Tokens: Niche Tokens for Every Ecosystem
There are a plethora of issues that are awaiting the DoS Industry for global expansion. But we are now heading toward a transitional period where new entrants like Musicoin will attempt to dethrone Industry giants like Spotify, and existing players like Telegram strive for innovation by initiating ICOs. The near future from today may become a world where a Token exists for every ecosystem.