Most investors who placed their bets on crypto based on pure speculation may have lost money now, especially those who only entered during the last bull run. Now, the narrative that crypto winters are for buidling is being tested with fire.
Thankfully, despite bankruptcy filings left and right from supposed-to-be stable companies, there remain many firms that are still in business. This brings to question which of these were new (or old), and which aspect of crypto they are focusing on.
For those who know little about crypto, there has been a phenomenal transformation of the industry in the last 5 years. So, what are the crypto innovations now that didn’t exist 5 years ago? For the record, non-fungible tokens (NFTs), central bank digital currencies (CBDCs), and the Metaverse were already existing, at least in the concept that they are right now.
Without further ado, here are the top 5 crypto innovations that didn’t exist 5 years ago.
Decentralized finance (DeFi) was a buzzword that was floating around 2018, although it only started materializing in 2019. It became a hit in 2020, especially with the arrival of lending protocols and staking pools that offered unreal rewards to those who participated.
Of course, many of these DeFi protocols needed a lot of revamps and reward adjustments because some proved unsustainable, while others suffered critical exploits due to bugs and coding errors.
For what it’s worth, DeFi has proven that it is a viable concept with sufficient space for growth and maturation.
The second in the list of the top 5 crypto innovations that didn’t exist 5 years ago comes as a surprise. If you have not heard of tokenized stocks yet, these are what the name literally suggests.
Basically, crypto exchanges would partner with licensed brokers in this regard who facilitate the selling of stocks in fractionalized amounts.
Many leading crypto exchanges today now offer these, although there is still a lot to consider, regulation-speaking. It is not clear whether tokenized stocks will become a hit in the future, especially since the crypto industry is under heavy regulatory scrutiny.
This is probably the second most-hyped phenomenon in the last bull run after NFTs, for the reason that games like Axie Infinity and MIR4 allowed people to get money from simply playing and accomplishing in-game missions and other activities.
However, this model proved to be unsustainable after many people caught wind of what it offered. Some are still building their games despite the bear market, although it remains to be seen whether they will have a decent economy or not.
Ethereum Name Service
Ethereum Name Service, or ENS, is sort of a website that represents a person’s Ethereum wallet. It is the counterpart of the Domain Name Service (DNS), which is the system for identifying, monitoring, and regulating of Internet addresses.
ENS is revolutionary because it offers convenience to users while maintaining crypto asset security. To be sure, the concept has been floating around for some time, although it was embraced only in the last few years. Other blockchains are also developing their own version of the ENS.
Our list of the top 5 crypto innovations that didn’t exist 5 years ago would not be complete without Web3. This innovation is something that even crypto haters are starting to appreciate.
Basically, Web3 is encouraging a massive revolution worthy of notice by well-known investment firms such as Silicon Valley-based Andreessen-Horowitz because it has the potential to reshape the digital landscape forever.
Currently, many prevailing platforms use the Web2 paradigm. Each website still has a centralized leadership prone to censorship. With Web3, this can change.
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Crypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.
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