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Beyond CryptoKitties: Is There A Place For Blockchain In The B2C Market? Posted on Oct 09 - 2018

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CryptoKitties, for anyone who is not familiar, is a virtual game in which players buy, collect, breed, and even sell virtual cats. But the uniqueness of the game is that it is built on the blockchain technology developed by Ethereum. Sales and ownership of each unique pet is validated through this network and no transactions can occur without the participants’ permission. It was launched in in October, 2017 and went viral by December, jamming the Ethereum network.

Since then, it has been spun off and managed to raise $12 million in funding from a combination of high-profile venture capitalists and angel investors. To clarify, cryptokitties are not a cryptocurrency. They are virtual pets bred and collected on an online platform. But the underpinning technology of this game is blockchain.

And here’s the thing: consumers can develop understanding of and comfort with the process by which blockchain is used for transactions, along with the benefits of that technology (security, privacy, immutability, etc.) by playing the game. And as they become comfortable, the opportunity for businesses to use blockchain and cryptocurrencies in the B2C marketplace will increase.

The B2B market is already benefiting from the blockchain

Blockchain technology has been adopted by financial organizations, healthcare providers, insurance enterprises and even by some agricultural companies. The reason is clear. “With blockchain, transactions, records, contracts and other documents are recorded and securely stored,” said Andrew Wong, a former JPM banker who left to join IDCM to pursue his dream of cryptocurrency. “They cannot be changed without permission from all parties involved. The potential for reducing fraud alone makes this technology valuable.”

And the initial blockchain technology has now given rise to decentralized apps (dApps) – the creation of software applications for real-life situations and solutions, and this may be the key to the B2C marketplace.

Why consumers hesitate to use blockchain

Anything new, especially in the world of technology, takes time to make its way to consumer acceptance. And so it is with blockchain. Why? Because it’s tough to understand. And people tend to mistrust what they don’t understand.

A survey conducted by Bitcoin.com revealed that in the largest crypto-market - South Korea - 90% of respondents have heard of bitcoin and understand what it is. However, only 8% know what a blockchain is and understand how it’s related with bitcoin and other cryptocurrencies. View More

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