In 2021, everyone believed blockchain technology was here to take over the world. A year later, war and recession have made everyone think otherwise.
The masses have moved from blockchain to AI. You have probably tried ChatGPT and got your mind blown by its answers. Many developers and indie hackers are putting out their own AI apps to ride the hype train.
But just like blockchain technology, AI is in the hype stage, and its success depends on mass adoption.
So why has blockchain technology been down-trending? The answer is quite simple. It is because of the lack of consumer products using the blockchain.
Instead, we saw influencers selling worthless NFTs for a quick cash grab.
For BSV Blockchain technology to move forward, we need the following changes.
Mass Consumer Products: The Most Important for Blockchain Technology
Consumers don’t care about blockchain technology, or any technology, for that matter. They want solutions to their problems. They don’t care about AI but use ChatGPT because it helps them work better.
Blockchain technology has yet to give the mass consumer anything worthwhile. NFTs looked like they had potential but burned up in flames because of all the fake celebrities.
Developers and companies need to start building products for the masses to advance the field. They should use blockchain technology to add transparency and ownership to good products.
Blockchain technology shouldn’t be used when it is not required. Many companies have been making decentralized versions of common applications like Youtube and Facebook. They have not been able to get traction as they do not offer anything more than their counterparts.
To change any data on the blockchain, you need to pay gas fees to support the system. Making users pay for every interaction creates a bad user experience.
Apps and websites that use blockchain technology need to integrate gasless meta transactions so that users don’t have to pay anything. Instead, they need to sign transactions.
Gasless transactions let users interact with dApps without having to purchase crypto. Getting crypto into a Metamask wallet can be a pain and will increase the user churn rate.
Layer 2 Solutions
Layer 2 solutions are blockchains built on top of a layer 1 blockchain or base layer. They reduce the friction that comes with scaling. They provide a framework for transactions to happen separately from the layer 1 blockchain. This means lesser gas fees. Layer 2 transaction data is then posted to the layer 1 solution to be secured by the base layer’s ledger.
Layer 2 solutions allow companies to create viable solutions and avoid huge gas fees.
Shift in Mindset
The shift in mindset needed for the mass adoption of blockchain technology is one that involves a shift from centralized systems to decentralized systems.
This means moving away from relying on a single point of authority or control, such as a government or corporation, and instead relying on a distributed network of computers to validate and record transactions.
This requires a change in how we think about trust and security and a willingness to embrace new and unfamiliar technologies. Additionally, it requires a mindset that prioritizes transparency, immutability, and privacy, which are the three core principles of blockchain.
It is also vital for people to understand the potential and limitations of blockchain technology and how it can be applied in different industries.