Look Beyond Short-Term Crypto Volatility Toward Long-Term DeFi Disruption

Over the last couple of weeks, we’ve seen selloffs of both stocks and cryptocurrencies. However, we shouldn’t be surprised. And as with stocks, we need to look beyond the short-term volatility of cryptocurrencies to their long-term value.

Over the long term, digital assets, and their underlying blockchain technologies, are set to form the foundation for the online transfer of value. This foundation is as transformational as the original internet of information was to become. Through this lens, it’s clear that established financial organizations need to bridge traditional financial infrastructure with that of decentralized financial (DeFi) infrastructure to leverage the best of both worlds.

The idea that digital assets would be immune to the pressures faced by traditional financial assets was always a myth. Instead, the fact that cryptocurrencies and traditional stocks are now similarly impacted by inflation and world events reflects the increasingly mainstream role that these currencies, and their underlying utility, are playing in the global financial system.

Of course, we can’t ignore how all digital assets, including cryptocurrencies, have also been affected by fear and skepticism spurred by the questionable practices of Terraform Labs, which saw the collapse of its TerraUSD stablecoin and its sister token Luna. At the same time, it is important to put this in perspective. The biotech industry didn’t disappear because of the Theranos scandal, and Web3 is not going under because of Luna. If anything, the success of snake-oil sellers speaks to our deep desire to see these ideas come to life.

As we move forward, bridging between traditional financial systems and Web3 blockchains and services will be critical to building trust, compliance, and risk management infrastructure into DeFi solutions. Blockchain is a transformational innovation in providing immutability along with a new set of financial rails built on top of Web2.

Equally important is getting traditional finance, with its wealth of experience and systems, involved. A new generation of software is emerging, which is bridging traditional financial compliance and risk management with the ability to transfer value digitally.

Despite the short-term devaluation of cryptocurrencies, all signals point to them moving from the edge and into the center of everyday commerce and finance. This is the time for traditional institutions to start reinventing themselves for the new world by bridging their existing Web2 infrastructure and applications to the promise of decentralized finance and the tokenization economy of Web3. The BCware team has been building the foundations for this world since 2018.

Instagram, NFTs, and BCware’s Multichain

CoinDesk is reporting that Instagram is piloting NFT integration for users to showcase their NFT art.

I don’t find NFTs as art interesting. And that’s not to say anything negative. It’s simply my personal interest. I’ve always been interested in integration and the business application of technology. I’m an observer and a storyteller.

With that in mind, notice the one key point that CoinDesk felt was most important to mention about this scoop (as of the time of this post, Instagram hasn’t yet made an official announcement):

Meta’s Instagram to Support NFTs From Ethereum, Polygon, Solana, Flow

They’re highlighting the fact that Instagram’s NFT pilot will be multichain.

Community is Key

Why might this be the key point?

Web3 is about community. Notice how the language around Web3 is emerging. DOAs are governed communities. Discord communities spring up around new projects. Community. Community. Community.

It’s not about bringing people to your platform; it’s about taking your platform to your community participating natively.

This is a smart move by Instagram. They know it’s not about bringing NFTs to Instagram, but bringing Instagram to NFT communities.

And those communities exist on a variety of chains.

You know who else is making smart moves in this space?


BCware NFT App for Shopify

We’ve been working with Shopify to launch the BCware NFT App, a multichain app to enable merchants to meet their communities in their native environments.

Our app enables e-commerce innovation around NFT sales and bundling with physical products. This is a starting point for merchants to explore NFT Gated Commerce.

You know what else is nice to see?

Instagram has chosen the same chains that we chose for our Shopify App: Ethereum, Polygon, Solana, and Flow.

In our app merchants can list an NFT independent of chain. The NFT is minted after purchase, and at that point in time the buyer can choose the chain they prefer.

This is just a demonstration of the importance of multichain using NFT commerce to make the point. Many different business cases need the flexility to abstract away blockchain complexity from solution development.

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