(Kitco News) – As the crypto winter drags on, there are still areas of the blockchain ecosystem thriving under the radar. EverX co-founder and CEO Alexander Filatov told Kitco News anchor David Lin how investors can navigate the cryptocurrency hype cycle, and how the DAO plans the next FTX-type event. We talked about how they can help prevent and where NFTs can create real-world value.
Government adoption trends
One area where Filatov is making progress is the public sector. He said governments around the world are finding interesting applications for blockchain technology, such as central bank digital currencies (CBDC), identity management, and voting. “I think the government is discovering that there is something about this technology that brings more functionality,” he said. “When it comes to CBDC, money can be programmed and it allows for a lot more traceability.”
Filatov sees two trends driving blockchain adoption by governments. “One is the desire to control a decentralized space,” he said. “And the desire to embrace technology and bring more programmability, slash, functionality, and even transparency and control to the financial system.”
NFT becomes a reality
Filatov also sees a different future for NFTs, especially one that is more rooted in real-world applications than in its speculation-driven heyday, with the emergence of AI-driven creative processes.
“When NFTs really explode in the spring of 2021, you will remember that you can generate collections of rocks, monkeys, frogs, etc. Everyone will realize this is just short-term hype.” he said. “Now that we have technology like Midjourney that allows us to generate amazing collections in minutes, it just doesn’t make sense. The future of NFTs is utility, and the actual utility he knows the components.”
Filatov sees several areas where NFT programmability and robust proprietary components can solve real-world problems. “FIFA has been struggling for years to keep people from reselling tickets. I was just in Qatar for the FIFA World Cup event and it’s still not resolved,” he said. . “Blockchain allows you to program resellability, program specific rules, build loyalty if you want.”
For artists, NFTs offer a new way to eliminate middlemen, he said. “For example, a well-known artist can use a modern marketplace to issue his own ticket, perform a concert in the Metaverse, and sell the ticket as his NFT. No, just artists and users.”
big brand emerges
Filatov said businesses and big brands are starting to find ways to use NFTs to directly address their customers and fans, and believes the use cases will become more sophisticated as the industry develops.
“For example, football clubs, Starbucks and Playboy have had mixed success with NFTs in the last year,” he said. “I think a lot of them failed because they were in a hurry and didn’t think enough about utility, but that’s just the beginning.”
DAO can prevent mismanagement and fraud
He also believes that Decentralized Autonomous Organizations (DAOs) can greatly contribute to the crypto space in terms of governance. “We’ve all seen the failure of centralized decision-making systems. I don’t want to go back to FTX, but it was a bit of a one-man show,” he said. Moving away from centralized decision-making and potential misconduct to decentralized decision-making and consensus-driven decision-making, which we hope will result in greater transparency, trust and security. .”
move blockchain forward
When asked what he thinks are holding back the growth of the cryptocurrency ecosystem, Filatov said that while the broader market is playing an important role, developers are adopting new tools and technologies. said he could make a significant contribution to support
“Of course the biggest factor is the global financial system,” he said. “With U.S. interest rates rising, it’s no surprise that people move money away from the more speculative sectors.” Filatov said that, like tech, the blockchain and crypto space are still very risky. admitted to be “I think we’re starting to see money moving back from the more defensive investment segment to the riskier, higher yield segment.
The second major factor is adoption, which he believes will improve as applications become more intuitive and user-friendly. “We are still talking about 100 million users who are using blockchain slash crypto more or less regularly,” he said. “And that [adoption] We do this by continuously improving our UI and UX. I remember when I first tried wallets and exchanges in 2016. From a UI/UX perspective, it was like the internet in 1993 or something. It’s probably the internet around 2000 now, with a friendlier UI and a better UX. ”
Watch the video above to see which cryptocurrency market segments Filatov believes will grow in 2023.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.