Beyond the Hype: Real World Blockchain Use Cases
Polygon’s Policy Team Releases The Value Prop and We Offer a FedNow Roundup
What’s blockchain good for anyway? This is the default position of many today, and to help educate our audience we’ve written at length about blockchain use cases, but sometimes the work of others is so impactful that it deserves to be highlighted. Such is the case this week, where we bring attention to The Value Prop, an open-source database of blockchain use cases curated by the Policy Team at Polygon Labs.
The Value Prop is searchable by industry, use case, and blockchain network. A quick scan of the use cases reveals the sheer breadth of what teams are working on in web3 to bring the benefits of an immutable ledger to the masses. From carbon credits and crowdfunding to remittances and royalties, The Value Prop is an online resource to share with your colleagues who still wonder what crypto could possibly be good for anyway.
We can’t change the narrative clouding crypto overnight, but we can help people understand that blockchain is not about speculative assets and digital art; it’s the story of a technology that may well be destined to change the world — for the better.
Beyond the Hype: Real World Blockchain Use Cases
Author: Hiro Kennelly
When explaining blockchain to people outside the industry, often one of their first comments has to do with its value proposition; what is crypto good for anyway? It’s a legitimate question, and highlights that one of the main challenges faced by crypto is simply its narrative. Those with strong privacy concerns and modern-day gold bugs have dominated the conversation around blockchain-based technology since its advent, and the mainstream press focuses mostly on scams and rugpulls, cyber crimes, and the guy who tossed keys for his 10,000 BTC in the dump.
All this is to say that the public dialogue around blockchain is one thing, but its actual value is something else entirely. Bankless Consulting has covered a variety of use cases in this newsletter, so you may know that the value proposition for blockchain extends to the limits of our imagination. However, the number of initiatives working to expand the use case for this technology is far larger than could be reduced to print. Fortunately the Policy Team at Polygon Labs recently released TheValueProp, a website indexing all the work being done to further blockchain use cases, and it’s shaping up to be a go-to resource for many within the digital assets space.
The Value Prop
Work on The Value Prop began with a blog post entitled “Community Policy Initiative No. 1 at Polygon Labs” released earlier this spring. In the post, the Policy Team sought to crowdsource blockchain use cases, to index “all the ways in which blockchain is a fundamental utility in this new era of the internet”. The Value Prop is the result of this feedback.
The Value Prop can be searched by economic sector, use case, or blockchain network, and cross-referenced. Sectors include education and finance, and most major blockchains are included in the database. The real meat of the database lies in the enumerated use cases, which can alight the imagination on fire:
And that’s really the value proposition for this database: it enables the crypto curious to begin to learn about the opportunities afforded by blockchain while also permitting those within the digital assets space to peek into the use-case toolbox to see what new combination of primitives may be available to solve a pressing problem, incentivize a particular behavior, or reallocate a precious resource, whether time, attention, or money.
The comprehensive list of use cases provides rough boundaries to begin to frame how blockchain can help your business better track inventory or build more loyal customers, but if you’d like to know how blockchain can be used in your business, please reach out to Bankless Consulting - the world’s first web3-native consulting firm. We can’t change the narrative challenging crypto’s use cases and real-world value overnight, but we can continue to educate, and one by one help our clients prepare for a future that is destined to defy any categorization.
Hiro Kennelly is a writer, editor, and coordinator at BanklessDAO and the Editor-in-Chief at Good Morning News. He is also an Associate at Bankless Consulting, and is helping to build a grants-focused organization at DAOpunks.
🎙️ Early Podcast
A Podcast About Web3 Business from Bankless Consulting
Early Ep. 18–HPayne: The Rise of Shapeshift & DeFi’s Financial Revolution
In this episode of DSide's podcast, HPayne, the Marketing Director of ShapeShift, a leading non-custodial crypto exchange, joins as a guest. With over a decade of experience in the IT industry and a deep understanding of blockchain technology, HPayne sheds light on ShapeShift's evolution from a centralized to a decentralized model. The discussion explores the reasons behind this transition, including the high costs of operating a centralized exchange and the friction it creates in trading. The podcast also delves into the regulation of centralized and decentralized exchanges, emphasizing the community participation in ShapeShift's decentralized autonomous organization. Furthermore, the conversation touches on real-life community building, user interfaces in decentralized finance, and the potential for blockchain networks like Gnosis Chain and Ethereum. HPayne's background in the music industry adds another dimension to the conversation, as he envisions how blockchain will revolutionize music ownership. The episode concludes by discussing upcoming innovations at ShapeShift and HPayne's dream project within the company, offering valuable insights into ShapeShift, blockchain, DeFi, and the future of finance and ownership.
Early Ep. 19–Nick and Marcus (RKL Team): DeFi Meets Gaming- Inside the Explosive Rise of Rumble Kong League
In this episode of DSide's podcast, Nick and Marcus from Rumble Kong League (RKL) are featured as guests, discussing their respective journeys in decentralized finance and the gaming industry. With Nick's extensive experience in DeFi and Marcus's background in "Free to Play" games, they delve into their three-year dedication to developing RKL and the community that has grown around it. The hosts highlight the significance of the PFP (Profile Picture) experience in fostering community engagement. RKL's vision revolves around basketball culture, incorporating gameplay, fashion, and artistry, with collaborations with brands like Gatorade and NBA athletes. They emphasize the importance of community building through "Clubs" within RKL and emphasize the iterative nature of the project based on community feedback. The hosts share their long-term vision, aiming to create a comprehensive sports ecosystem that extends beyond basketball. This podcast episode provides valuable insights into the RKL journey, community growth, ecosystem vision, and commitment to success within the web3 space.
Web3 Business Developments
Curated News on Recent Blockchain Adoption and Innovation
Everything You Need To Know About FedNow
Author: Zareef Hamid
🔑 Insights: With FedNow set to launch in July, the U.S. payments landscape is expected to transform by offering real-time, irrevocable transaction settlements. With this system, funds will be made available instantly, increasing competition, promoting innovation, and enhancing payment services. Despite the U.S. ranking 33rd for consumer adoption of real-time payments, the FedNow Service aims to put the U.S. on par with countries like India and Brazil, which have seen substantial growth in real-time payment transactions.
FedNow will operate 24/7/365, facilitating payments through a shared network and enabling value-added services, fraud prevention tools, and real-time payment capabilities.
Compared to the RTP network by The Clearing House, FedNow offers a higher transaction limit and the backing of the Federal Reserve Bank, promoting healthier competition in real-time payments.
The use cases for instant payments range from consumer, business, to government sectors. For consumers, it will streamline bill payments, refunds, and insurance reimbursements. Businesses can benefit from e-invoices and requests for payments, potentially reducing the cost of financial operations. The government can expedite tax return payments and refunds, improving the tax-to-GDP ratio.
Financial institutions will benefit from reduced payment processing costs and the ability to send and receive rich data, enhancing the security of instant payments.
The FedNow Service is a key step towards modernizing the U.S. payments ecosystem, potentially fostering significant innovation and driving the digital economy.
Crypto Leaders Praise Draft GOP Bill, Dems Raise Concerns
Author: Nicholas Morgan
🔑 Insights: In a second Congressional hearing in a week, crypto executives backed a draft bill aimed at shaping the regulation of digital assets amidst a challenging regulatory landscape. CEOs from Ava Labs and Circle championed the proposed Digital Asset Market Structure Discussion Draft, arguing for the need for nuanced regulation and emphasizing the importance of the U.S. maintaining its global competitiveness. The draft bill seeks to adjust the existing regulatory system, establishing clearer registration requirements for crypto trading platforms and defining a transition timeline for assets moving from securities to commodities. Democrats, however, expressed reservations about the bill in its current form, criticizing certain provisions as potentially weakening SEC oversight and providing undue leeway for companies facing regulatory scrutiny.
Regulatory Clarity: The proposed bill intends to bring much-needed clarity to the digital asset regulation landscape, potentially helping business owners better understand and comply with legal obligations.
Stablecoin Regulation: The focus on stablecoin regulation could legitimize and stabilize these digital assets, providing a more trustworthy digital payment option for businesses.
Registration Requirements: The bill sets out to establish clearer registration requirements for crypto trading platforms, potentially impacting businesses in the cryptocurrency exchange industry and those considering crypto-based transactions or investments.
"The steps that the US government takes in the coming years will have a significant impact on dollar competitiveness in the decades that follow. Failing to take the appropriate steps could have devastating consequences for our country."
–Jeremy Allaire, CEO of Circle
FedNow Will Save the U.S. From a CBDC
Author: Charlene Fadirepo
🔑 Insights: The introduction of the FedNow system promises to revolutionize the speed of transactions between U.S. banks, addressing the country's need for faster banking payment solutions. Contrary to misinformation, FedNow is not a central bank digital currency (CBDC); instead, it aims to expedite retail bank payments, potentially reducing the need for a CBDC in the U.S. The FedNow system will provide real-time payment processing, offering benefits such as quicker access to funds and improved cash flow management for consumers, businesses, and financial institutions.
FedNow is an optional service for financial institutions and will interoperate with other payment systems, such as Fedwire and the Automated Clearing House (ACH) system, serving over 10,000 financial institutions within the Federal Reserve's network.
It has been met with misunderstanding and conspiracy theories, with some wrongly associating it with the launch of a CBDC. FedNow only impacts interbank transactions, not consumer transactions.
The implementation of FedNow could reduce the need for interbank cryptocurrency tokens, potentially rendering them obsolete.
Given that most U.S. payments rely on interbank payment services, the addition of the FedNow system will accelerate the majority of payments in the country.
US 'Has Not Yet Determined Whether It Will Pursue a CBDC,' Says Treasury Official
Author: Pedro Solimano
🔑 Insights: At the Transform Payments USA 2023 conference, Graham Steele, assistant secretary for financial institutions, revealed that the U.S. Treasury Department is actively studying the possibility of launching a central bank digital currency (CBDC), though no decision has been finalized. The U.S. is among approximately 114 countries currently exploring CBDCs. Concerns around maintaining privacy, risks of potential bank runs, and transparency were recognized as areas needing careful consideration in this digital transition.
An interagency working group is researching the potential for a U.S. CBDC, suggesting a shift toward digital currencies may be on the horizon.
The group aims to balance financial leadership, national security, privacy, illicit finance, and financial inclusion, indicative of a comprehensive approach to digital currency implementation.
Concerns about privacy and risks associated with CBDCs, such as the potential for bank runs, are on the authorities' radar, implying that these issues will be addressed in any future policy decisions.
The exploration of Privacy Enhancing Technologies (PETs) is planned, signifying a commitment to maintaining privacy and fostering trust in digital transactions.
Will Stablecoins Still Be Relevant After FedNow?
Author: Shalini Nagarajan
🔑 Insights: As the Federal Reserve prepares to roll out FedNow, questions have been raised about the continued relevance of stablecoins, digital assets that have gained prominence by addressing traditional banking inefficiencies. However, according to Bitwise crypto research analyst Ryan Rasmussen, stablecoins are expected to retain their importance, offering key advantages over the new centralized system.
Stablecoins offer global accessibility, making the U.S. dollar more readily available in regions suffering from high inflation and banknote shortages.
Unlike FedNow, which necessitates a U.S. bank account, stablecoins provide universal financial access.
Stablecoins allow for on-chain transactions, a feature not offered by FedNow.
Stablecoins offer an affordable, accessible way for individuals to send money overseas.
Stablecoins don’t limit transaction size, offering flexibility in contrast to FedNow’s restrictions.
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