Next Big Thing In Crypto

Bitcoin was a groundbreaking innovation, and with the help of improvements made over time, it is generating huge amounts of value. A large number of blockchains emerged after Bitcoin. However, blockchains that follow Bitcoin could not introduce an innovation that could be considered a unique use case for a long time.

Before 2018, people were using blockchains for basic financial transactions such as buying and selling coins on centralized exchanges, making payments, and money transfers. When I started writing on Steemit, there was no tangible public use case other than rewarding the content produced by bloggers.

Photo by Johannes Plenio on Unsplash

What is big and important depends on personal opinion, but I believe the crypto innovations that have marked the past two years are DEFI protocols and NFTs. DEXs, yield farming and lending applications, collectibles, play-to-earn games, content creation, and metaverses make up today's mainstream crypto world. After years, the crypto industry has finally managed to become a part of everyday life.

So what will be the next big thing in the crypto industry? Algorithmic stable coins have become one of the important trends. In particular, Terra's 19% fixed annual return on the UST algorithmic coin over the Anchor protocol has made a huge impact on the crypto industry. Thanks to Anchor, Terra moved up to second place in DEFI and widened the gap with BSC day by day. They have managed to set the agenda with the large investment they have received and the Bitcoin investment they have been making.

Last week, the Hive blockchain also increased the interest rate of HBD, one of the oldest stable coins on the market, to 20%. Yesterday, we learned that the Tron blockchain is preparing to launch a stable coin with a 30% return on May 5. Tron is a blockchain known for its "me too" style innovation policy. Previously, they had released products that imitated Ethereum in the field of DEFI and NFT.

Could algorithmic stable coins and the fixed income financial products based on them be the next big thing? Answering this question before considering other options can be misleading.

Although it has not yet created a huge agenda in the media, I believe that DAOs will become more important over time. The fact that NFTs have become an important part of value generation has resulted in the inability to represent all the added value produced through coins.

In the example of Bitcoin, the rules about the number, timing, and distribution of coins to be produced are written in the code. Since the code is the law, there is no obscurity for the people involved in the network.

Since we do not know the nature and timing of the NFTs to be issued, we cannot write the rules for them into the code. In this way, the people in the administration are in a position to set the rules. As a matter of fact, there are advantages that come with being able to adjust the emission according to the conditions, and these advantages also apply to projects that do not contain NFT. Thus, DAOs come into play and investors participate in important decisions and create a balance mechanism. DAOs also have the potential to address the problem of VCs being involved in the project early on and getting most of the value generated.

Because DAOs provide a solution to an intangible problem such as sharing the value generated on the blockchain, it may take some more time for people to realize the benefits they provide. So could DAOs be the next big thing in the crypto space?

The next big thing may not even be on anyone's mind today. Or it is still under production or its performance is being developed. Blockchain technology suddenly entered our lives when it was not on the agenda. NFTs also seemed to pop out instantly, at least to me.

When assessing the potential of the crypto industry, we must also consider the possibility of emerging big things that we don't know yet.

I have no doubt that we will encounter many interesting innovations as we continue to participate.

Thank you for reading.

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