Innovation is still lacking in the blockchain world
During the 2017-2018 ICO period, we saw more ideas being generated as to use these new technologies. Unfortunately, much of what was proposed was either underfunded, saw a lack of skills from the development team, or was an outright scam (rugpull).
Since that time, innovation waned. Sure, Wall Street entered the mix with their financial products. Honestly, this has been nothing new for the most part. They recycle the ideas of TradFi such as ETFs and futures. While that serves its purpose, it is not accessing the capabilities of blockchain.
We have to grasp this is more than just financial. Naturally, when there is a tradeable component, something that can be transferred via monetization, we cannot escape that. That said, we should be looking at this as a secondary factor.
In this article we will dig into what blockchain could offer with reservations and how entire secondary markets could easily form.
Why not tokenize reservations?
Think about how simple this concept is. A reservation system offers tokens instead of tickets or some other form of notification as a means of verification. An individual with the token gets the rights to whatever the reservation offers.
In most instances, this might not mean much. However, if we stretch it to something that is scarce and expensive, we can see the difference.
Let us look at something like automobiles. Occasionally the manufacture will come up with something very hot. This causes the buying public to suffer greatly.
The dealership model places the scarcity in their hands. People go to purchase the vehicle, only to see markups often exceeding MSRP. Then we have the issue of transparency. People are given a number "in line", only to have to believe that is where it stands.
We see a process that is devoid of transparency.
Blockchain solves this. To start, there is a token created at the time of the reservations, posted to chain, creating a clear line of production. Hence, anyone with the tokens knows how many were created before it.
We often see people place deposits on things such as vehicles only to have people walk away. This stems from the fact people often change their minds, especially after buying into FOMO. After stepping back from the emotion, logic often causes one to pass on the item.
What we have is money lost. Again, this changes with tokenization.
A secondary market could form where the reservation holder could sell the token. Instead of simply walking away, the token could be put to market. Since it is unique (NFT) in the sense that is has a specific application (entitled to vehicle # whatever), people are free to decide what is paid.
Here we can see massive disruption.
Obviously, the entities that are profiting from the present system has no desire to change anything. Car dealerships are some of the wealthiest businesses out there. Then we have companies such as Ticketmaster that rake in enormous fees for the service they provide. Part of their revenue model is the cancellation of tickets, i.e. forfeiting the deposit.
To be effective, blockchain must operate without notice in the background. Most are focusing upon making businesses (and individuals) accept crypto. Perhaps instead, seamlessly integrate blockchain and then crypto usage will follow.
After all, the monetary units on blockchain is cryptocurrency. Focusing upon it as an information center is crucial
Blockchain is a secure, transparent, and tamper-proof way of recording information. This makes it ideal for applications where trust is essential, such as financial transactions, supply chain management, and voting.
From the basis of trust, entire markets can be developed. People will know what the token represents and be willing to pay for that item or service. Of course, a reservation at something like McDonalds might not have much value. As shown, the product (or service) must be in demand.
Think of the people who stand online for the new iPhone. How about the ones who rush to see a film?
In other words, the potential is huge. Disruption is possible if people will pursue the objectives. Few, so far, appear willing to do this. It is where the magic will reside.
As we head towards the end of 2025, people still think about crypto when it comes to blockchain. This is something that must change.
