In his monthly crypto tech column, Israeli serial entrepreneur Ariel Shapira covers emerging technologies within the crypto, decentralized finance (DeFi) and blockchain space as well as their roles in shaping the 21st century economy.
The impending metaverse dominates the crypto headlines as analysts race almost obsessively to predict what innovations the new digital world will bring. Facebook’s rebranding to Meta seems to be the tip of the iceberg, as Microsoft — and a few other Big Tech companies — announce its plans to integrate into the Metaverse.
The hype around the metaverse is only natural. There’s no doubt that humans of the future will spend more of their time wearing VR headsets than they admit to. but here is the keyword Future — Most of the Metaverse evolution is creating a digital world to which most humans will not have access for many years to come. It is important to save energy and attention for growth from mainstream crypto/DeFi as they are already largely replacing economic incentives.
Take Ripple (XRP), which was sued by the US Securities and Exchange Commission (SEC) for allegedly making an illegal securities offering through the sale of its cryptocurrency token, XRP. The company that took away the benefits of blockchain from the “let’s overthrow the banks” crowd to the “let’s work with them” crowd has come a long way from the days in which many thought a federal lawsuit was the last in the coffin. Will the nail of crypto as an industry, has recently taken an upper hand in litigation. Several thousand miles south of the United States, bitcoin (BTC) has become the focal point of a city in El Salvador.
related: SEC vs. Ripple: A Predictable But Unwanted Development
These two symbolic developments highlight the magnitude of blockchain-based finance and its evolution towards mass adoption, and it is worth taking a closer look at them, as well as other major blockchain breakthroughs looking forward. Just as many crypto investors tend to lock in their profits from time to time instead of holding them forever, so should the industry.
ripple effect
The recent change in the landmark SEC case against Ripple could accelerate crypto adoption. Two years ago, the SEC sued Ripple for allegedly raising “more than $1.3 billion through an unregistered, ongoing digital asset securities offering.” The case struck fear in the hearts of investors concerned about the implications of their investments in similar projects as well. But the tables have turned, and Ripple claimed “a huge victory” when a judge denied the SEC’s request to reconsider key documents.
Should Ripple resist the SEC lawsuit, the world’s only superpower could be well on its way to taking a friendly stance on crypto, and that would open the floodgates. And that doesn’t mean even the most radical crypto purists will be encouraged. Ripple’s work toward equipping older banks and traditional financial infrastructure with blockchain-powered tools already in use by the DeFi platform, rather than replacing it with the libertarian DeFi dream, has bolstered the idea of updating the centralized financial system. validity can be obtained.
related:It’s Time for the US to Create a ‘Ripple Test’ for Crypto
This will have serious economic implications for the future of the global economy that analysts should consider deliberating on NFTs at least for some time.
making DeFi accessible
And when Ripple makes waves and bored apes populate Twitter, what about DeFi? The market is currently valued at 207 billion, up slightly from 104 billion on April 25, 2021. DeFi is actively opening up traditional investment opportunities for retail investors around the world. At a time when inflation is on the rise, and housing is becoming less affordable around the world, access to investment opportunities can be a lifesaver for retail investors, aka the average people.
And this is what critics often miss about crypto as an industry. Those who argue that blockchain is a technology miss out on a use case development by companies like Levana, which will actually introduce crypto investors to DeFi through games that teach them how to be populated by humans. How to use leverage with lore about Mars’ dystopian future. Such an approach, known as investment simplification, is spreading like wildfire, as is the entire industry. The DeFi world is projected to explode by about 70% by 2026.
related: DeFi gaming: a catalyst for mainstream adoption of decentralized finance
government support
As Ripple pushes the United States toward greater crypto openness, countries ranging from Germany to Singapore are stepping up crypto regulation. Of course, there is also the high-profile case of El Salvador’s adoption of bitcoin as legal tender, as a prime example of a country experimenting with crypto as an attempt to get out of financial ruin. Other countries are also taking steps to leverage blockchain to their advantage.
The Government of the Philippines is actively partnering with a company called Oz Finance to provide economic opportunities through Special Economic Zones (Ecozones). The idea is to empower individuals and companies to operate virtually or physically in tax-free, privacy-protected, decentralized application (dApp)-friendly regions, powered by TOTOz, Oz’s utility token.
Blockchain is becoming so intertwined with the life of the average person that universities such as Harvard and MIT are offering courses in blockchain, showing how the world is moving toward mainstream adoption, even among academics.
Although it is constantly expanding, the entire blockchain industry only has so many resources to deploy at a given point in time, especially with developer shortages around the world. Therefore, it is important to put things into perspective and focus on initiatives to improve the financial lives of average people in this physical world, before we all enter the metaverse with the rest of the DeJens.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
The views, opinions and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Ariel Shapira is a father, entrepreneur, speaker, cyclist and serves as the founder and CEO of Social-Wisdom, a consulting agency working with Israeli startups to help them establish relationships with international markets .
