When it comes to the development of business structures or projects, one of the crucial things to look out for is the business environment of choice and its governing structures thereof.
The core values of cryptocurrencies and assets is that they are governed directly on the chain or protocol they reside, meaning that all bad governance effects affect the entire network as opposed to traditional finance structures where governance decisions do not directly affect the deciding body, instead, it profits them.
So in essence, we have a governance protocol and we have the several structures it governs, one of which is the valued assets. You see, usually when people think about cryptocurrencies and blockchain economies replacing traditional finance networks, they usually feel bitcoin has to rise up and beat traditional finance or that Ethereum has to do it. Well, I for one have the belief that if only bitcoin existed as a cryptocurrency or asset, it would be dead right now because it would eventually get boring to hold.
Alternatives are good for business, this is what helps people understand what values you bring to the table and where your weaknesses really are - which is also a factor that is crucial for growth. The expansion of crypto blockchains, coins and tokens has directly drawn value to bitcoin but surely maxis won't want to accept this.
That said, knowing how ecosystem expansion fosters internal growth, we should be able to understand from here that it will be the same mechanism that will create external growth or what better way to frame it? Mass adoption? Yeah, that's crypto's favorite phrase!
When Individuals and Businesses fully understand crypto
People have this understanding that mass adoption effectively means having more people holding or investing in one coin or the other already existing, but no, that isn't mass adoption. What I view as mass adoption revolves around the full leverage of what crypto and blockchain has to offer and that is tokenization!
People are yet to understand what tokenization actually means thus fail to realize the value it possesses. Forget JPMorgan tokenizing whatever the fuck they are tokenizing, forget the number of treasury bills being tokenized, and the real world assets and products? Ignore those too, this is just pre-existing businesses trying to suck more value from their consumer base.
What mass adoption really entails will be actualized when individuals understand the competitive edge they have over most businesses when they choose to build on a crypto token economy.
Shouldn't we already know this by now due to the success of memecoins and shitcoins that offer no real utility? You see, that's the thing, crypto in itself is a utility, and that is enough to start a successful fire.
The mass entrepreneurial space is yet to understand this, even existing businesses are yet to understand this. Imagine if Microsoft chose to replace its bing rewards points with a crypto token that is tradable, surely that would create a buzz they can leverage. I mean, any buzz comes with a ton of leads to capitalize on, but like I said, they don't understand this.
Protocol Governance as a risk factor
Notice the title says "The flexibility in token creation and management will be a business driving force".
There's always a risk in every business venture, when it comes to adopting tokens to build a business atop, the first risk factor here is the network. With a platform like Hive, there isn't a way to create a first layer token, but sidechains like Hive Engine enables this but the risk here is that the network can decide to impose any rules at any time that may affect token creators and holders.
For example, a mandatory tax on all token transactions that feeds back to Hive engine pockets, but as we know, such changes can alter a business's operations and may trigger some emotions from holders.
But token economies are not rigid, if an entire network such as Ethereum could move from proof of work consensus algorithm to proof of stake, surely a mere token can change blockchain or protocol of residence when needed.
If I quite understand how this works, I suppose it would involve creating new tokens on another blockchain or protocol with the same name or new name(depending on community choices), building a smart contract where individuals can send their old tokens to and receive the new ones, quite simple yeah?
Of course the smart contracts will burn the old tokens in the process and the business can move one without having to bend its operations to the new rules of its previous network.
The only problem? The change of environment might affect users that haven't been exposed to them before but if this all is happening via a business frontend that doesn't really need users to understand what goes on beneath then the change of environment wouldn't pose any user-side problems.
Notwithstanding, the general idea is that it is quite flexible and protocol governance changes can cause only minimal impacts on project operations, something that is frankly the reverse with traditional finance structures.
Crypto and blockchain technology is not only the future of money, it is the future of all things business and finance.