5 Trends to Consider for Blockchain Development
October 25, 2024
Blockchain is changing how brands interact with their audience by providing transparency and ownership. It allows communities to influence decisions through decentralised governance. Web3 platforms help brands connect directly with users and grow. With the right blockchain and compliance solutions in place, blockchain unlocks new possibilities for innovation. Let’s look at 5 key trends to consider for blockchain development.
1. Transparency and ownership
A brand’s first thought should be how will they interact with the blockchain. Blockchain gives the unique ability to record immutable information online and show ownership of digital assets. A popular digital asset is a Non-Fungible Token (NFT) that becomes a certificate of authenticity to show ownership.
There are many examples of NFTs having a cultural impact, but one that stands out is the $69 Million dollar sale of Beeple’s artwork as a NFT. Everydays – The First 5000 Days (Beeple’s artwork) spotlighted the power of digital art and having it recorded on a blockchain. An NFT is a timeless collector’s item that cannot be physically tampered with or prone to corrosion like many classic artworks are. Giving investors new ways of ownership is one of the countless ways blockchains solves real life problems.
2. Governance through a community-owned DAO
Another critical consideration is the role of the community in deciding essential factors of the brand’s roadmap via voting governance and a Decentralised Autonomous Organisation (DAO). Those holding a brand’s NFT or cryptocurrency can sometimes entitle investors to help determine the brand’s decisions by voting and verifying those votes on the blockchain. A treasury’s (where funds are kept) distribution can be determined by governance from holders of the brand’s token. Generally, the more tokens you hold, the more voting power you have. The power of a DAO is even if the creator of the brand is no longer active, the community can continue operations.
A great example of a successful Web3 DAO is the NounsDAO. Using this example of the Nouns Deli, a holder of the Nouns NFT can vote on a proposal of how the treasury distributes the NounsDAO fund. Anyone can create proposals, but only Nouns NFT holders can vote. The Nouns Deli was officially opened in early 2024 thanks to the NounsDAO and continues to thrive, showing the power of governance and DAOs. As of Q4 2024, the NounsDAO treasury fund is over 4,000 Ethereum.
3. Community building through blockchain development services
Alpha, FOMO, whitelist, airdrop, and many more lingo terms are important to understand when building a blockchain community. It fosters community by creating a shared language that resonates with early adopters and blockchain enthusiasts. Embracing this terminology allows brands to position themselves as forward-thinking and innovative, allowing Web3 brands to build trust and credibility.
Web3 marketing on platforms like Discord, X, and Telegram are essential for building engaged communities. These platforms offer real-time communication, allowing brands to foster direct relationships with their audience. Discord is ideal for hosting exclusive groups, while X keeps followers updated with quick posts. Telegram serves as a hub for fast-paced conversations. Brands can excite and reward loyal supporters, driving interest in new initiatives and building strong community engagement.
If you’re unsure where to start, Take3 offers a seamless onboarding blockchain development service to help you conquer blockchain.
4. Picking the suitable blockchain for your brand
With so many new blockchains being developed, picking the right blockchain to suit your brand’s needs is pivotal. Many blockchains provide greener solutions that are less carbon-heavy, and some provide better infrastructure and communities with the offset of consuming more energy. Here are two blockchain validator mechanisms that achieve different results.
Proof-of-work
Proof-of-Work (PoW) is a consensus mechanism where miners solve complex puzzles to validate transactions and secure the blockchain. It offers high security, making it harder for attacks or tampering. Brands should consider PoW if they prioritise decentralisation and strong security, though it comes with higher energy costs.
Proof-of-stake
Proof-of-Stake (PoS) is a consensus mechanism where validators are chosen based on the amount of cryptocurrency they hold and stake. It’s more energy-efficient than Proof of Work, offering faster transaction times and lower costs. Brands should consider PoS if they want scalable and eco-friendly blockchain solutions.
5. Regulation and Compliance Solutions
Regulation and compliance solutions ensure blockchain projects operate within legal frameworks, safeguarding the business and its users. As governments introduce stricter regulations, especially around Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols, blockchain platforms must adopt tools that ensure adherence to these standards.
In Australia, blockchain brands must comply with the crypto-assets law from the Australian Securities and Investments Commision (ASIC). Compliance solutions help brands maintain transparency and trust while avoiding legal risks and enabling legitimate growth in the evolving blockchain space.
A brand needs to understand many considerations when developing with blockchain technology. It may seem complex from the outside looking in, but with enough understanding and persistence, it can open up endless possibilities for community building.
Need help with developing your brand with blockchain? Take3 provides blockchain development services and solutions to help you accelerate to a new level. Get in touch here.✌️
