DeFi or decentralized finance has successfully stolen all the attention in the crypto space. Within a short period of time, everybody started getting busy with what they call “yield farming,” where you can stake/lock your crypto assets and get rewarded with DeFi tokens. These DeFi tokens then can be sold to stake or lock more of your crypto assets. People kept doing it as DeFi token prices kept on rising before the crypto market corrected itself at the beginning of September.
People know and start to feel more confident about the market cycle in the crypto space. They understand nothing can go up forever, and nothing can go down forever either. However, just like history has taught us, the crypto market has been through “boom and bust” cycles. ICOs in 2017, IEOs in 2019, and now DeFi tokens, nothing lasts forever. Bigger projects like Bitcoin and Ethereum may live forever, but it’s kinda hard to see coins that go up 10x within 2-3 months can be considered “sustainable” for a longer period of time.
But of course, there will be another boom and bust cycle or even niches that might become mainstream in the future. So, what are these niches that can potentially transform the blockchain space in the future? Let’s see.
This industry has been predicted by many crypto enthusiasts to be the next big thing since forever. The truth is that blockchain is capable of improving the matter of digital identification. As everybody knows, there’s no “universal” digital ID as of today because every company has its own centralized database. Wherever you go somewhere new, you need to register again for another digital ID.
This problem can be solved if there’s an established blockchain where every digital ID can be verified and confirmed by various nodes without having to exchange databases between corporations. There are already existing crypto projects that try to tackle this issue, such as TheKey and SelfKey.
However, these projects don’t really get all the marketing despite the fact they are actually adopted. TheKey, for example, got some cooperation with the Chinese government, but most crypto traders have forgotten about this project. It would be great if this niche can make a comeback and become viral again as they get more real-life adoption.
When you read about decentralized oracles, you might spontaneously think Chainlink. Yep, Chainlink is the most popular crypto project that tries to provide decentralized oracle solutions. The thing is, it is not the only one, and it might open a new can of worms where everybody tries to be the “better version of Chainlink”.
And yes, it’s not hard to see how decentralized oracles will be the next big thing if not already is. With the rising adoption of IoT devices, it will be easier for them to connect to a blockchain, and get incentivized for providing accurate data. Chainlink and others will be able to provide real-life data, and the data will be trustless as well.
If there’s anything that the blockchain lacks, it’s the lack of “understanding” and “processing” real-life data into a decentralized world. And real-life data in a blockchain space needs to be decentralized in the first place. Otherwise, it would be hard to trust the info.
AMM For Tokenized Assets
Uniswap has successfully transformed the crypto space in 2020. Unlike the previous years where order book exchanges were the big thing, Uniswap popularized the idea of automated market maker (AMM) where liquidity providers are incentivized with trading fees. And with Uniswap being the most popular DEX right now, everybody else tries to copy its idea.
Recently, Binance introduced Binance Swap, which is basically the centralized version of Uniswap. You can provide liquidity to Binance, and you will get interests based on your deposit. I can see that AMM for tokenized assets (such as those tokens that are pegged to equity or physical metal, etc.) will be something that can get big in the future because of real-life adoption.
Truthfully, nobody knows what’s going to happen to the crypto space. The whole industry is still one giant experiment, where sometimes tokenomics matter much more than real-life adoption. However, it’s undeniable to see that real-life adoption must happen for crypto to ever become mainstream. These three industries above might become the next gem after the end of DeFi bubble that can happen anytime before the end of this year.