Blockchain is not just Bitcoin
Preview: The rapidly growing space of DeFI, Coins and distributed ledger technologies
It’s been more than a decade since the Bitcoin whitepaper was published by Satoshi Nakamoto (presumed a pseudonym) in 2008 titled Bitcoin: A Peer-to-Peer Electronic Cash System. While the term Blockchain is never referenced in that paper instead it talks about a peer-to-peer network and the network timestamps transactions by hashing them into hash-based proof-of-work forming a record that cannot be changed (emphasis added) without redoing the proof-of-work. This pattern that later on became to be called Blockchain and distributed ledger technology is now the underpinnings of several applications and new decentralized or trustless business models.
The iValley team has been at the forefront of Blockchain technology and its disruptive impact. In our first annual FINTECHTALK(TM) conference and ever since we have been featuring Blockchain startups. We have postulated its disruptive potential not only in fintech as the system of truth eventually disrupting ad-revenue based internet businesses. See here.
In this new research, we analyzed the evolution of the Blockchain-based ecosystem and see growth across 3 broad innovation categories. See preview infographic below.
Blockchain infrastructure and platforms - this includes exchanges like Coinbase, Binance and wallets to hold digital assets and also platforms like Hyperledger, Ethereum and Corda that have been the foundation of distributed ledger applications.
Coins and Tokens - Bitcoin the most popular cryptocurrency is hardly the only kid in the block. Stablecoins that are pegged to a fiat currency (like Tether) and now even Central Banks are looking at issuing digital currencies (CBDC). There are various legal classifications of tokens that include security (represents securitization) and utility (represents a fractional value of a utility)
DeFI or decentralized applications are trustless networks (self-clearing and self-settling networks without a 3rd party) that have seen rapid rise in the last decade mostly in financial services but now in supply chain and other areas like e-government. In fintech, the most successful areas of application have been in capital markets, lending and securitization, cross-border payments and insurance.
The full report and the listing of all the blockchain companies included in our analysis is available to our clients. Click here to request a copy.
Paddy Ramanathan is Founder and Managing Director of the iValley Innovation Center in the East San Francisco bay area. iValley Innovation Center (http://www.ivalley.co) is a corporate venture studio and host of FINTECHTALK™. iValley's mission is to incubate and catalyze the development of big ideas and innovation.