As blockchain technology becomes more mainstream, people will enjoy a number of financial and ideological benefits. In this article, we’ve broken down the key benefits blockchain will provide in the long term. Here they are, in no particular order:
- Easier access to funding for startups
- Conventional sources of startup investment like VC funding will be disrupted by token offerings in place of giving away equity
- Increased security
- Increased transparency
- Provably fair distribution and allocation of funds
- Businesses will pivot towards non-custodial solutions as users expect more control
- Many rewards and gamification methods will be tokenized with crypto across multiple industries. Things like frequent flyer miles or rewards in restaurants can be tokenized and then used and traded more easily
- Censorship will be more difficult as decentralized technology becomes more accessible
- The dominance of fiat currencies should erode once stronger, stable deflationary cryptos appear in the very long term
- Jobs that involve mundane tasks like accessing or counting funds in person should disappear in the far future
Easier access to funding and less reliance on conventional sources of capital means business owners will have more freedom to develop their business without being restricted by investor demands. Often, having investors can create additional friction because investors’ and founders’ incentives are not always aligned.
Additionally, with blockchain it’s much easier to figure out why something is going wrong. When Visa went briefly out of service earlier this year, people had no idea why they could no longer access their funds. Proprietary, centralized servers like those at Visa prevent consumers from knowing what’s going on behind the scenes. Using blockchain, users can interact with products and services while maintaining custody of their funds.
Lastly, tokenizing an existing business can provide competitive advantages over other businesses. Read why that’s true here. At ELIX, we’re exploring how tokens can be integrated into businesses to provide rewards and incentives for using the ELIX app. To get a better idea of how we’re integrating tokens into the ELIX app, try the app for iOS here and for Android here.