Early adopters and people who know their stuff regarding blockchain have been telling the world about its potential benefits for decades now.
The world has responded. A quick look at the investment deals and venture capitalism focuses this year will show that a huge number of startups are getting the attention of big VCs and investment funds as companies try to use this revolutionary tech to shape the future. What’s the reason for blockchain being so very popular now? Some people are making big claims about the technology and the fact that it could change the way day-to-day life works – some industries have already been transformed.
Industries Transformed by Blockchain
The first big application of blockchain to get mainstream use around the world was the advent of crypto. Cryptocurrencies have reached huge market caps and there are now thousands of different variants including things like meme coins that no industry analyst would have predicted 15 years ago.
Crypto’s knock-on impacts are felt more in some high-tech industries that have really embraced this way of making payments. Probably the quickest industry to adapt has been the casino industry with many of the newer launches in this field providing people with a way to deposit into their accounts using Bitcoin. The rise of the Bitcoin casino has been something that has left an impact on the wider industry and allowed users to take advantage of Blockchain technology.
Gambling and casinos exist in an industry where there are a lot of transactions regularly taking place and speed is one of the reasons why the cryptocurrency revolution has been so fast in this industry. People can use crypto to move their funds around often more quickly than they would using traditional currencies.
On top of that, the other blockchain benefits include anonymity. People are taking advantage of the fact that blockchain is more anonymous and doesn’t require so many personal details. Rightly, people are more protective over their personal information and don’t necessarily want it to be shared all the time, which means that blockchain is a solution for the more private customer.
Crypto has changed the whole payment platform and outlook in many locations and many industries. Naturally, some are just quicker on the takeup than others! A lot of modern, tech-savvy gamers are more used to using blockchain technologies. Growth is predicted over the next few years as more consumers may start to use crypto in day-to-day purchases as well as to hold for longer periods of time.
Funding Continues to Flow For Blockchain Startups
As more people understand the blockchain startup benefits and VCs look to latch on to the next big thing, there are more companies providing specific funding for the area.
Morph and Foresight Ventures recently created an ecosystem fund that enables entrepreneurs and companies with early-stage blockchain products and ideas to potentially access funding to take them to the next level or grow their ideas to prove their concept.
Blockchain technology is a buzzword in the industry but this is because so many people understand the benefits it brings. It makes sense. Investors are always on the lookout for the next big thing, the next industry that’s ripe for change. Blockchain seems to tick all the boxes. It represents a chance to get in early on a technology that could reshape multiple sectors and potentially offer returns that investors are looking for.
Among recently funded companies we also see Morpho Labs, a “permissionless and non-custodial lending protocol.” which allows their users to potentially “Earn interest on over-collateralized lending and borrow digital assets using immutable infrastructure.”
The French startup was recently funded to the tune of $50 million to try to turn its ideas into a more widespread concept, and the company is not alone. Many others have received VC funds to try to take business to the next level.
VCs Identify the Potential For Growth
Another reason blockchain is catching the eye of investors is its potential for growth and scalability. Unlike some technologies that are limited to niche applications, blockchain has a wide range of potential uses. We see things like decentralized finance (DeFi) and non-fungible tokens (NFTs) make the news but there may also be room for other applications – people have discussed identity management and voting systems, and the possibilities are nearly endless. This broad range of applications means that blockchain isn’t just a one-trick pony; it’s a platform with room to grow and evolve.
For venture capitalists, scalability is a key factor in deciding where to put their money, and with blockchain, that potential seems vast. It’s not hard to see why investors are willing to put their faith in some of these startups.
Globally, people are becoming way more alert to blockchain and the way it could disrupt industries in the very near future and this is represented with forms of funding.