Web3 Trends at Collision Conference 2022
Written by: Alvin Fong, Senior Engineering Manager, TribalScale
📫 Subscribe to receive our content here.
💬 Have any questions about our blockchain capabilities? Click here to chat with one of our experts!
If you’re anywhere close to the tech scene in 2022, you’d already know that the hottest question on everyone’s mind is: Where will the NFT/Web3 industry go? Here’s a small slice of the trends we saw at Toronto’s Collision Conference in June 2022!
NFTs: The Hunt for a Prime Use-Case
Walking around the lively aisles of Collision, I saw the full gamut of Web3 startups. All of them pitching their unique use case, from hand-drawn collections made by artist collectives, to NFTs raising funds for humanitarian efforts in the Ukrainian-Russian conflict.
NFT companies are continuing to search for the killer app that will launch blockchain technology into mainstream adoption. I saw some very compelling pitches from companies that use NFTs as passes to exclusive perks and rewards — that a user can invest in and sell to another user, with no restrictions on transfer rights. I imagine that a ‘GoFundMe’ style app selling NFTs for various societal and personal causes can do very well.
Another area I could see Web3 startups starting to explore is NFTs representing co-ownership of assets, tangible or otherwise. There would be immense legal obstacles, since there could likely be an expectation of profits from such ownership. This might be an NFT collection, representing co-ownership in non-profit organizations, with sales proceeds funding the organization’s activities.
Blockchain: Energy Usage & Carbon Footprints
At Collision, we noted that Web3 companies are increasingly aware of the environmental concerns of the blockchains they run on. One common critique of blockchain technology is the massive energy consumption made worse by the difficulty-adjustment algorithm of Ethereum. Given Ethereum’s latest delay in moving away from Proof-of-Work, environmentally conscious organizations are looking for less carbon intensive options.
According to Dapper Labs (of CryptoKitties and NBA Top Shot fame), the Flow Blockchain uses far less energy (2 kWh*) than a comparable transaction on the Ethereum chain (between 48 kWh to 340 kWh). This is due to the use of Proof-of-Stake protocol. Here at TribalScale, our exploratory efforts with Flow show that we can mint a NFT within seconds, for a minimal processing cost. We believe that by making the right pro-environmental choices, we can make the crypto space far more compatible with society’s goals.
*In 2021, Flow blockchain processed approximately 71 million transactions using 0.18 GWh of energy, hence the average transaction used 0.002 kWh of energy.
The Crypto Winter
It is no surprise that funding for Web3 companies is tightening amid the wider crypto market downturn. The “hype money” river is drying up. Now, more than ever, the mass of startups in the Alpha and Beta stages will need to demonstrate a clear value proposition for their mainstream consumers. Doing so allows these startups to explore their possible revenue streams and help ensure their survival.
Final Thoughts
At TribalScale, we see continued interest from the industry in blockchain technology and applying them in compelling offerings with our various partners. Our recent projects with dApps on various blockchains include Ethereum and Flow.
I’m Alvin Fong, a Senior Engineering Manager at TribalScale. I have been involved in projects developing software on Android, GCP, and Flutter platforms. My current interests include learning more effective testing techniques, the latest architecture patterns, and how to build a culture of open and clear communication in our remote work world.
TribalScale is a global innovation firm that helps enterprises adapt and thrive in the digital era. We transform teams and processes, build best-in-class digital products, and create disruptive startups. Learn more about us on our website. Connect with us on Twitter, LinkedIn & Facebook!
