We have oracles. We have wallets. We have decentralized exchanges, centralized exchanges, multiple consensus mechanisms, specialized blockchains and L2s, smart contracts, NFTs, dapps, autonomous lending protocols, fiat on-off ramps, payment solutions, and more.
Great. The foundation for Web3 is all but built. I wouldn’t mind seeing some gas tanks and novel governance structures, but we’re definitely on the right track.
Now it’s time to put this infrastructure to use. While I do hope the technology and interfaces continue to improve, I’m getting a little tired of hearing about yet another wallet or DEX. We need to think bigger. Almost all of the money that comes into crypto comes in the form of investment, either through VCs in startup equity/token sales or through the purchase of the token on the open market.
But the majority of investments are based on investor confidence. Value that enters on the whim of the individual leaves on the whim of the individual. We need value to enter and to stay there regardless of FUD.
One easy way to connect the blockchain to the real world is through payment solutions. Maybe that’s why the strangely passionate Ripple supporters like my dad act the way they do: deep down, they realize the power of connecting global payment transactions to the blockchain. Not only are ultra-fast, ultra-cheap transactions in everyone’s best interest, but it plugs the blockchain into that massive flow of capital.
Another easy way to connect the blockchain world to the real world is to target other high-volume, low-barrier-to-entry industries that are suffering from centralized authorities.
E-Commerce is the perfect use case for existing blockchain infrastructure. At its core, e-commerce consists of peer-to-peer transactions. The problem is that centralized marketplaces facilitate transactions, which means they can control who gets and sees what and when. Blockchain technology offers transparent, permanent transaction data, and enables peer-to-peer environments, payment solutions, authenticity verification, and fair distribution of products: everything e-commerce needs to shrug off the heavy influence of individual interests.
We often talk about a “free market,” but almost every element of our market is controlled by one force or another. Sure it’s technically “free”; if you’re one of the big players. But the only markets that are “free” in real life are swap meets and garage sales.
Crypto Fighting Recessions
By plugging the blockchain into retail and e-commerce, we will create lasting value that won’t leave when investors leave. We will be connected to the everyday value generated by human life in society. Whether the market is up or down won’t matter. The applications connected to this value will survive or even thrive.
Because what happens to the volume of small secondary market sales during a market dip? It’s a tough thing to measure, but data shows that secondary markets increase during recessions. This isn’t surprising at all. No one wants to buy expensive, full-priced items when they have no money or are worried about the future. To weather the winter, people start buying and selling from resellers and from each other.
Recessions are all but inevitable for the foreseeable future, but they don’t have to be the end of the world. Platforms like SHOPX can help facilitate peer-to-peer transactions on a highly secure, efficient secondary market. It’s like Amazon and Craigslist combined. Brands and individuals can create their own online storefronts with more personalization and flexibility than Amazon, and individuals can resell their items with more tools and security than Craigslist.
By facilitating an open market, SHOPX can help cushion the blow of rising prices and inflation. Instead of buying from profit-seeking corporations, individuals can instead interact with each other and establish fair market values for everyday and even luxury items.
The bear market isn’t a problem for the real builders of Web3. It’s an opportunity to demonstrate why we’re here.