When I posted my blog post detailing how Bitcoin incentivizes clean energy which you can read here, a few critics mentioned that Bitcoin doesn’t do anything and that crypto in general is overhyped. The amount of knowledgeable people(at least appeared to be knowledgeable just not knowledgeable on crypto) who identified with this argument was quite shocking to me and I thought I would make a quick list detailing the sectors of crypto and then I will follow it up with another post detailing how crypto will revolutionize the world. Bitcoin technologically speaking, isn’t anything impressive, but it’s not supposed to be. It is the future digital store of value, replacing gold in this respect but there are far more interesting and bigger use cases for crypto. Let’s get into it.
Although cryptocurrencies are still very far behind in this sector, the future of making payments, whether it’s for rent, taxes or buying groceries, will all be done through your digital wallet and with a cryptocurrency of some sort. Charles Hoskinson even predicted in an AMA that in the future you’ll be able to pay with whatever you like, either a cryptocurrency or NFT and your payment will be instantly converted into whatever currency the recipient wants. How this would work and the logistics of it is unclear as this is very far away, but the point remains: crypto currencies are revolutionizing the way we transact value across the globe.
For projects in this space, any and all cryptocurrencies have the potential to be used as payment in the future, what matters is if merchants adopt and accept that crypto as a means of payment.
Notable projects to keep your eyes on:
Bitcoin(Guide to Bitcoin can be found here)
Dogecoin(Analysis can be found here)
Cardano(Analysis can be found here)
The list could be endless with this one.
Smart contracts are defined as “self-executing contracts with the terms of the contract between buyer and seller directly written into lines of code”. Essentially, smart contracts are programs that execute once an event has happened. They look to remove middlemen of industries like banking and real estate, for example you will no longer need to talk to someone to get a loan, you’ll simply fill out an application form and if you meet the criteria provided then a smart contract will execute and deliver the funds to you immediately.
Notable smart contract platforms:
Ethereum(although potentially overrated here)
Cardano(Analysis can be read here)
Solona(analysis can be read here)
Centralized exchanges are essentially middlemen that facilitate the buying and selling of cryptocurrencies as well as they aim to assist you in the storage and protection of those cryptocurrencies as well. They offer a wide range of products and services from crypto lending, to futures trading, charting tools and more.
Notable Centralized Exchanges:
Coinbase (No token)
In contrast to centralized exchanges, decentralized exchanges look to provide the same services as a centralized exchange but without any centralized authority or control. In a decentralized exchange you are buying and selling crypto on a public blockchain rather than going through a centralized middleman.
Notable Decentralized Exchanges:
Kucoin(Analysis is here)
1inch(Analysis is here)
Non fungible tokens are verifiable digital goods on a ledger which identifies their uniqueness. Think of a painting from Picasso, because Picasso might have only made one copy of a specific painting, that painting is worth a lot(as long as you can verify that it is the original). With digital files and assets, when you send these files or assets through a digital space you are simply making a copy of that file and then no one really has an “original”. The technology behind NFTs allows there to be an “original” copy and therefore creating digital scarcity for the first time. Right now NFTs are predominantly used as digital art or for music but this is a very long term sector, which won’t see it’s full potential for many years once the metaverse comes to fruition. I’ll talk more in depth about this in my next post.
Notable NFT Platforms:
Lukso (Analysis is here)
Audius (Analysis is here)
Tons of NFT projects, even ecosystems like Cardano have NFT support and NFT platforms in their ecosystems, the ones I’ve listed above are simply the ones I’m most familiar with.
Healthcare cryptos are a very interesting sector and is the one I’m the least knowledgeable on but I will do a deeper dive this summer. There’s a few reasons to bring crypto to healthcare including but not limited to:
- Having systems that incentives healthy habits by paying out crypto
- Facilitating payments in the healthcare space suing crypto
- Health care insurance
- Using smart contracts to make insurance and health care more efficient
Notable projects in this space:
For more info on these 3 projects I recommend checking out this post.
Gaming is one of my favourite sectors for crypto to come to as it’s a sector I’m looking to invest in outside of crypto as well. For crypto related purposes, the main thing we’ll see is NFTs coming to digital goods in the gaming world as potentially gaming currencies becoming crypto currencies.
Notable Gaming Cryptos:
The Sandbox (SAND)
I made top gaming altcoin watchlist for April which you can read here (keep your eyes on these for the summer as well)
Last but not least is Decentralized Autonomous Organizations. DAOs are autonomous organizations with rules programmed through computer programming that are transparent to all and controlled by the members of the organization and not a central authority or government. Essentially a DAO is a company without hierarchical management, it’s a group of individuals operating under a programmed set of rules and a voting system to make changes where needed.
And there’s my top 8 sectors for crypto that I believe you should keep an eye on and do more research into them. It’s important to get familiar with these sectors and understand them so that you can better predict where money will be flowing into and be ahead of the herd. Now obviously there are sectors that I missed and projects I didn’t mention, this is more of a general guide rather than a comprehensive one. Stay tuned for the next post where I go over how crypto will revolutionize everything. Thanks for reading and let me know what you think!