BlockchainTechnology EmergingTrends

Group 2
Adil |Arshnoor |Kshitij |GChandra |Kalika|Manish|Yuvraj
 Introduction
Blockchain technology has the potential to revolutionize various industries by offering increased transparency,
security, and efficiency. Some of the main emerging trends for blockchain across different sectors are:

• Decentralized Finance (DeFi): It is the transformation of traditional finance through blockchain technology to
create decentralized financial applications and platforms.

• Supply Chain Management: The use of blockchain technology SCM helps to improve transparency, traceability, and
efficiency in supply chain operations.

• Internet of Things (IoT): Integration of blockchain and IoT technologies is used to enhance security and
automation in IoT devices and systems.

• Stablecoins: Stablecoins are digital assets that are pegged to a stable value, such as the US dollar, in order to
minimize price volatility. Stablecoins have become increasingly popular as a means of facilitating transactions and
as a store of value in the cryptocurrency market.

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Use Case 1 - NFTs
NFTs stand for Non-Fungible Tokens
• Non-Fungible means non-replicable or non-exchangeable
• Tokens refer to the process of tokenization

NFTs are a type of digital asset that carries proof of authenticity of a unique
piece of content, such as music, art, video etc

Unique: Each NFT has its own unique digital identifier, making it one-of-a-
kind
Ownership: Based on tokenization, NFTs provide proof of ownership for a
digital asset
Security: Transactions are recorded on a secure blockchain, making NFTS a
safe way to trade and store digital assets
Provenance: Provenance refers to the chain of ownership and transactions
which provides evidence of asset’s authenticity and ownership
Security Scarcity: NFTs can be designed to have a limited supply, which creates
scarcity and helps to increase the value of the asset
NFTs are not related to Bitcoin or any cryptocurrency for that instance!!

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Use Case 1 - NFTs
When an NFT is created, it is stored on blockchain and a unique
digital identifier (hash) is associated with it for tracking and
verification.

Creation (Minting): A digital file is generated by a content

creator
Storage: NFT is then stored on blockchain. The most common
ways to store NFTs are Software Wallet (Metamask or Trust
Wallet), InterPlanetary Filing System (Pinata), Cold Storage
Hardware Wallet (Trezor, Ledger)
Sale: NFTs can be sold to a buyer and the transaction is
recorded on blockchain
Transfer: Transfer of ownership through sale or gifting and
recording the transactions
Use: NFTs can be used for a variety of purposes, such as for art
or collectibles, or as in-game assets in online games

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Use Case 1 - NFTs
Market Trends
Revenue in the NFT segment is projected to reach US$3.546B in
2023
1.Growing Adoption: Growing Adoption: NFTs are being adopted
by an increasingly diverse range of industries and organizations,
including the art world, gaming, sports, and music.
2.Record Sales: The NFT market has seen record sales, with some
individual NFTs selling for millions of dollars.
3.Increasing Regulation: Governments and regulators around the
world are paying closer attention to NFTs and exploring ways to
regulate the market.
4.Increasing Mainstream Awareness: NFTs are becoming
increasingly mainstream, with media coverage and public
interest growing.
5.New Use Cases: NFTs are being used for an increasingly diverse
range of applications, such as virtual real estate, ticketing, and
collectibles.
6.Development of Interoperable Standards: There is an ongoing
effort to develop interoperable standards for NFTs, to make it
easier for NFTs to be traded and used across different platforms
and applications.
7.Growing Interest from Investors: Investors are showing
growing interest in NFTs, as the market continues to mature and
become more established.
Barriers Ahead
1.Scalability: One of the biggest challenges facing NFTs is scalability, as the
current infrastructure can become congested and slow as more users
adopt NFTs.
2.Environmental Impact: The energy consumption of blockchain
networks, such as Ethereum, which is currently the most popular platform
for NFTs, has raised concerns about their environmental impact.
3.Lack of Regulation: There is currently a lack of clear regulation and
guidelines for NFTs, which creates uncertainty and risks for both buyers
and sellers.
4.Limited Accessibility: The technology behind NFTs can be complex and
difficult to understand, which limits accessibility and usage for some users.
5.Security Risks: NFTs are stored on blockchain networks, which are
vulnerable to hacking and other security threats. As NFTs become more
valuable, these security risks become more significant.
6.Intellectual Property: There are also concerns about intellectual
property and ownership of NFTs, as well as the potential for fraudulent
NFTs to be created and sold.
7.Market Volatility: The NFT market is highly speculative and volatile,
which can create risks for buyers and sellers.
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Use Case 2: Charity
Present Situation:
• Donations are done via f2f cash
transfers/wire transfers
• Reducing trust in charitable
organizations due to lack of traceability
• Increasing scepticism around the
working of charities
Charity blockchain cycle
Why BlockChain?
• Minimizing administrative costs
through automation
• Provides more accountability through
traceable giving milestones
• Donor & Client Privacy
Stakeholder benefits:
• Central Governments < especially wrt local benefits disembursements>
• Local Councils, Charity volunteers, service providers such as food banks.
• Affordable digital micropayments for donors with easy tracing
• Ease of handling tax reclaims/rebates related to the donations
Implementations:
Case Study #1: World Food Program — Syrian Refugees, Jordan
The World Food Program (WFP) has been doing trials blockchain as a means of
making these transfers more efficient, transparent and secure. WFP built and
implemented a more robust blockchain system in refugee camps in Jordan. As
of October 2018, more than 100,000 people residing in camps redeem their
cash-for-food assistance through the blockchain-based, Building Blocks,
system.
Case Study #2: BitGive — Chandolo Primary School Water Project, Kenya
BitGive has been accepting bitcoin for crowdfunding charitable projects since
2013. Donors can donate bitcoin directly to BitGive or to specific projects on
their donation platform, GiveTrack. Successful projects include the Chandolo
Primary School Water Project in Kenya that raised BTC 1.2 (approx. US$15,000)
in January 2018 to build a rainwater catchment tank, latrines and training.
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Use Case 2: Making Charity Donations Transparent
1. Donor makes a donation to the charity using a
cryptocurrency

2. The donation is recorded as a transaction on the

blockchain, providing transparency and immutability.

3. The charity receives the donation and acknowledges

receipt through a smart contract on the blockchain.

4. The smart contract automatically allocates the funds

to specific projects or initiatives, as specified by the
donor.

5. Progress on these initiatives can be tracked and

verified on the blockchain, providing accountability
and confidence to both the charity and the donor.

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Use Case 3 - Loyalty Tokens

A blockchain Based loyalty ledger provides a common platform solution for multi-merchants
directly linking payment transactions to loyalty tokens owned by consumers

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Use Case 3 - Loyalty Tokens

Blockchain Benefits
• Common platform consumer + merchant loyalty
value exchange
• Consumer privacy and community features
• Can work as a value gateway to existing CRM or
loyalty schemes
• Ease of Traceability of transactions

Target Clients
• Merchant Acquirers needing a value to add 'sticky
offer'
• Payment providers creating digital marketplace
offerings
• Large to medium-small sized retailers that can have
loyalty schemes of their own

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ThankYou
IB Section A Group 2

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