Forget the crypto winter; let’s take a look at the uses of blockchain in the real world

The winter of cryptocurrencies is temporary as blockchain uses evolve, he says Johannes SchweiferCEO and co-founder of CoreLedger.

As financial markets run out and pessimism increases, the hype and speculation about cryptocurrencies and blockchains are fading. Gone are the days when NFTs could easily fetch millions of dollars. Today, pictures of cute animals and memes are seen as scams.

Fortunately, good weather arrives after the rain. The bear market marks the beginning of the development season. A new generation of developers may emerge. Companies work hard and focus on creating practical innovations that will bring utility and greater efficiency. Thus they can overcome some of the biggest challenges we face today.

NFTs are just a small demonstration of the potential of tokenization. Outside of the artistic realm, several different objects can be turned into digital tokens. This allows us to host and trade any asset on the blockchain.

So where are these innovative projects being developed? This is how blockchain is becoming more and more essential for businesses.

The cryptocurrency winter is tough, but what about the agricultural crisis in emerging countries?

In the aftermath of the pandemic, the free fall of the peso and the financial crisis devastate Argentina, where inflation exceeds 50%. Over 40% of soybean oil and flour production comes from Argentina. Farmers are therefore rushing to liquidate their material and real assets. This allows intermediaries to obtain the goods at a lower cost at the expense of farmers.

This is a widespread problem in agriculture and livestock, especially in emerging economies, as their national currencies are constantly depreciating. By tokenizing their agricultural assets, farmers could protect themselves from inflation.

Blockchain technology also allows them to access national and international capital. This solution has already been tested on farms in Bolivia. Thanks to its tokenized participatory model, investors from all over the world can invest in it. Each token represents a percentage of revenue or a digital voucher.

How does it work ?

So how can we apply this solution? All you need is digital exchange technology which increases the liquidity of the tokens by enabling instant value conversion. Using this technology, it is possible to create a P2P platform that allows users to exchange tokens of different values. For this, the platform brings together an unlimited number of swaps and payments. It then chooses the optimal path from thousands of available transactions. This, according to various predefined criteria.

This allows you to swap any asset for another. While very interesting, this technology still has a long way to go to reach its full potential. The more trade increases, the more useful the technology will become.

To do this, companies, regulators and institutions need to synchronize their efforts. There must also be a shift in the perception of technology. In order to draw the right guidelines, fear of the unknown must turn into an understanding of the benefits of this technology.

Although still in its infancy, the market value of tokenized assets is nearly $ 20 billion. On the other hand, the total size of the digital asset market has reached $ 350 billion. This means that there is enormous growth potential.

Fight against climate change

Fighting climate change is one of the sectors benefiting from tokenization. Indeed, carbon credits are units used to measure reductions in carbon emissions. By using them, companies can reduce, eliminate or avoid greenhouse gas (GHG) emissions.

These are transferable units certified by governments or independent certification bodies. Each unit represents a reduction in emissions of one ton of CO2, or an equivalent amount of other GHGs. The holder of a credit can also use it to offset his own emissions.

The tokenization of carbon credits eliminates the problems of quality, operational transparency and project evaluation. By integrating these credits onto the blockchain, governments can ensure the transparency and integrity of information. The data, in fact, is stored in such a way as to eliminate double counts (when the credit is booked by both the buyer and the seller) making credits negotiable and accessible anywhere in the world.

So far, the blockchain hosts nearly 22 million carbon credits. The use of decentralized protocols in the carbon credit sector has provided new ideas on how to improve transparency and accountability. It also makes it possible to attract new categories of investors to projects with a positive impact on the climate.

Of course, lawmakers and businesses need to work side by side to eliminate opacity and help protect the environment.

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Protection of intellectual property

Legal documents and other types of agreements or contracts are often shared in paper form to ensure confidentiality and immutability.

We do know, however, that tokenization allows you to register and trade any asset on the blockchain. Businesses can then tokenize documents and other types of data to increase their security.

The elements registered on the blockchain are immutable. This allows you to prove their ownership without resorting to intermediaries or notaries, standardizing the management processes of copyright and intellectual property.

Indeed, obtaining proof of ownership is often a lengthy and expensive process. Thanks to the blockchain, singers who wish to prove the originality of their work and scientists who seek to patent their inventions have an additional tool.

Blockchain entered the legal realm in 2019. However, digital records policies differ from country to country, which can be cumbersome. But as the previously complex blockchain offers simple and easy-to-use applications, the situation is changing in the right direction.

Today, even the most conservative jurisdictions, such as China, have started using blockchain to help courts handle piracy and copyright infringement cases. The uses of blockchain in business exceed those in the agricultural sector. The environment and the protection of intellectual property are an excellent example of the potential of this technology.

Blockchain companies need to work with governments and regulators to find the most efficient and practical ways to use this technology. This is in order to eliminate false ideas and draw the right guidelines. Only then will we have a safe and sustainable environment that will help different players take advantage of the blockchain.

About the author

Johannes Schweifer is the CEO and co-founder of CoreLedger. He holds a master’s degree in chemistry and a doctorate in distributed computing and quantum chemistry from the Technical University of Vienna. A serial entrepreneur, Johannes spends his time solving problems and innovating. He has founded and co-founded several blockchain startups in the Crypto Valley.

In 2013 he co-founded Bitcoin Suisse AG and created his first infrastructure dedicated to the banking and accounting sector. In 2017 he founded CoreLedger AG, a startup that aims to encourage the use of blockchain outside of finance and speculation. Johannes is actively exploring blockchain to solve some of the biggest problems in the world. He demonstrates the true value of this technology with practical applications.

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