Blockchain needs a killer use case, but authentication is ruthless

The following article is an editorial by Tyler Adams. CEO and co-founder of COZ.

Over the past two years, cryptocurrency developers and venture capitalists have been hyper-focused on supporting infrastructure projects that hurt consumer-facing applications. As we look around our industry, we see a wealth of tools for developers to integrate privacy features, decentralize information, and extend platforms, but there is a dearth of applications that can use these tools. Masu. We are not defeating the argument that blockchain is the solution to the problem.

It doesn't have to be this way. Cryptography and its underlying blockchain technology have the potential to revolutionize the way we interact online and in the real world. In particular, blockchain as an authentication tool could provide an immutable and trusted source to verify information and address the growing crisis in the consumer goods market.

More and more people in this universe need this kind of integration with the physical world, what we call non-fungible items (NFI).

Cheer up, crypto winter is over

of Collapse of the NFT market and Metaverse failure Coupled with the onset of crypto winter, many developers have retreated from consumer applications and instead focused on improving decentralized infrastructure.

Remember, in the same year it was reported in the media: FTX bankruptcy This seriously damaged the reputation of the industry. We felt it was not a good time to bring mainstream users on board. Instead, developers put their heads down and focused on tackling issues like scalability, user experience, and security.

We are now seeing improvements on all these fronts. The Zero Knowledge (ZK) rollup improves the speed and efficiency of Layer 1 protocols and enables a Web2-like user experience through account abstraction. Less hacking From the first quarter to the second quarter of this year.

Needless to say, the price of Bitcoin Best everthis year was strengthened by the approval and mainstream interest in Bitcoin and Ethereum ETFs. stable coin and tokenization of real-world assets. For decentralized application builders, there's never been a better time to reach Web2 users and enterprises. All that is needed is to demonstrate that blockchain is more than just a platform for speculative assets.

counterfeit crisis

Blockchain, a transparent and immutable source of truth, can be used as a tool to authenticate information in the digital and physical worlds. The second-hand apparel market alone is worth the approximate value. $230 million This year, the used collectibles market is estimated to be worth $134 billion Alone. As the used goods industry grows, from Ebay to Depop to The Real Real and more, we can expect opportunities for counterfeiting to grow as well.

In fact, the market for counterfeit goods will be almost worth it. 2 trillion dollars By the end of the decade. Imagine if you had an on-chain authentication solution that could verify the origin of your products. This could open up unprecedented opportunities to integrate blockchain into the fashion and luxury goods market.

In the digital realm, the growth of decentralized finance (DeFi) means more people are trading assets without a centralized entity. Privacy is a core value of DeFi, but you need a way to verify your identity to protect against fraud. Blockchain authentication tools can be used here as well.

Blockchain and AI can be integrated to improve verification methods. Currently, authentication is done as follows: individual. However, AI enables image and pattern recognition and object detection on a larger scale. Blockchain can be used to store information collected by AI tools and provide a secure record.

Entering NFI

NFI brings real-world utility to NFT technology. By cryptographically linking physical assets to a “digital twin” on the blockchain, NFI can be used as a strong authentication tool. For example, if you're creating a luxury watch, you can embed a private encryption key that can be used to verify the watch's provenance if it ever hits the second-hand market.

Why are brands investing in this technology? Because when buyers can guarantee a return on the second-hand market, it brings more value to their assets. This isn't just limited to watches; shoes, jewelry, and collectibles can all be verified on-chain.

Note that fashion and luxury brands have not completely given up on NFTs. 9dcc NFT-linked fashion collection The design is inspired by digital innovation and debuted at this year's Paris Fashion Week. Younger generations are also concerned about the impact of manufacturing on the environment. Seeing brands embrace the circular economy through blockchain-enabled certifications could be beneficial for marketing.

Blockchain killer application

For too long, developers in the cryptocurrency industry have looked inward and focused on issues that are irrelevant to the general public. The industry is maturing and needs to embrace use cases beyond finance.

Authentication is a key area where blockchain can provide better solutions than existing technologies. Crypto winter is over and it’s time to bring back standards.