Crypto isn’t dead, it’s evolving rapidly to create a new world

There are few technologies as confusing to most people as crypto and blockchain. The tech and regulations underpinning it are evolving so rapidly, it is difficult for even technologists to often make sense of it.

Crypto assets and crypto currencies are based on blockchain tech, which is a form of distributed ledger technology that stores data on thousands of data servers around the world, as opposed to today where data is stored only in one place or clustered in a few locations. This data is open, meaning it can be viewed and verified by anyone taking part in that particular system. What this means practically is that an individual can transfer crypto assets without the help of intermediaries, say, banks or government agencies, thereby ensuring privacy, speed and lower costs.

The first cryptocurrency, Bitcoin, was created with anonymity in mind, it was a way for people to conduct financial transactions away from the prying eyes of governments. While it went on to become a speculative asset, today, crypto, and the underlying blockchain technology, has a far more ambitious goal – the transformation of the internet.

CoinDCX CTO Vivek Gupta says this technology can help usher in Web 3. 0 – a decentralised form of the internet where users can actually monetise their time spent online. “Whatever Web3 use case you may be driving, the value that comes from it must be distributed, and you cannot distribute that without crypto. For something as simple as depositing money in a pool and getting a receipt token, that receipt token is a crypto. That’s the proof that I have deposited the money. Without crypto there is no Web3 use case,” he says.

Decentralised finance (DeFi) is a huge part of what makes blockchain tech so disruptive. Imagine being able to lend your money to strangers on the internet and get paid an interest. Or imagine spending time on socialmedia platforms or playing video games and getting paid for your time spent by someone who needs data about you. Web3 makes this possible because the data isn’t controlled by any one company or country.

Decentralised apps (dApps) are another Web3 feature. Unlike traditional apps hosted on centralised servers, dApps operate on a peer-to-peer network and utilisethe consensus mechanism and transparency features of blockchain technology.

“I see a big disruption coming, especially in the DeFi tokenisation space and the whole content creator economy,” says Ravi Chamria, co-founder & CEO of Zeeve, a blockchain automation platform.

Ashish Singhal, co-founder & CEO of CoinSwitch, says the tech can revolutionise how we conduct business, store data, and even vote, since the tech allows people to verify data of any kind efficiently.

Regulatory landscape

Governments are worried about what crypto could mean for monetary policy, for their ability to regulate people’s lives. But disruption hardly ever requires consensus. If a new technology proves to be better than an old one, people will drift towards it.

Central banks have recognised the importance of the technology and some are creating Central Bank Digital Currencies (CBDCs) that are based on blockchain technology. “There’s a lot of activity happening in the regulated DeFi space. Looking at the future, we think guardrails are probably a good thing to have around these sorts of technologies,” says Andrew Vranjes, VP of sales at Blockdaemon, a blockchain infrastructure platform.

Cryptocurrencies too are rapidly changing. Where before the value of cryptocurrencies were based on what people were willing to pay for them, today there are crypto assets that are backed by real world assets like equity and real estate. Silvina Moschini’s Unicoin is one of them. “It is an assets backed, audited, SEC-compliant cryptocurrency,” she says.