Thursday 19 May 2022
Home / Africa / Commercial smart contract adoption next market driver — Mark Cuban

Commercial smart contract adoption next market driver — Mark Cuban

Billionaire investor Mark Cuban has tipped commercial smart contract adoption as the next catalyst to drive the crypto and blockchain sector.

The Dallas Mavericks owner and crypto proponent was commenting on the current “lull” state of the crypto market, compared to the internet or dot-com bubble in the early 2000s that saw a lot of over-hyped and relatively similar companies collapse.

The crypto market is painting a fairly grim picture of late, with nearly all of the top 100 digital assets facing double-digit losses over the past seven days.

There are likely to be several factors behind the bearish sentiments, such as the Federal Reserve’s recent policy updates. On Twitter earlier today, however, Cuban also pointed to a current “imitation phase” in crypto/blockchain as opposed to genuine innovation.

“Crypto is going through the lull that the internet went through,” he said.

In Cuban’s view, the blockchain projects that purely “copy what everyone else has” by bridging over nonfungible tokens (NFTs) to decentralized finance (DeFi) protocols will die out eventually, as he argues that they are not required on every chain.

Instead, he opined that smart contract platforms geared toward commercial usage and replacing software-as-a-service (SaaS) apps will thrive long term:

“What we have not seen is the use of Smart Contracts to improve business productivity and profitability. That will have to be the next driver. When businesses can use Smart Contracts to gain a competitive advantage, they will. The chains that realize this will survive.”

In terms of recent institutional backing of smart contract platforms, CoinShares’ crypto funds report for all of 2021 shows that Ether (ETH), Solana (SOL), Polkadot (DOT) and Cardano (ADA) were the options of choice for the heavy hitters last year.

Related: Mark Cuban proposes using Dogecoin to solve Twitter's crypto ad problem

According to the report, funds offering exposure to ETH were the resounding favorite, garnering a whopping $1.38 billion. Next in line were Solana funds at $219 million, while Polkadot products generated $116 million and Cardano funds also pulled in $115 million.

About Sean Patterson

Check Also

The Lightning Network Lunch: A Bitcoin contactless payment story

The Lightning Network (LN) just got a bit faster, as the suitably named Bolt Card now enables Bitcoin (BTC) enthusiasts to pay for goods and services using contactless technology. A data analyst at the company behind the card, CoinCorner, took the Bolt card on a trial run on the Isle of Man, a British Crown dependency in the Irish Sea. “MSW” — as he is known — tapped to pay at more eight point-of-sale (PoS) devices during his lunchtime investigation. It worked like this: for any PoS device showing a Lightning invoice, MSW simply hovered the NFC enabled Bolt Card nearby. In total, MSW 20 paid for 20 breakfasts, lunches, drinks and snacks using the LN prior to the Bolt Card's release: MSW told Cointelegraph that using the Bolt Card “felt completely natural and worked just as you would expect!” “For me, it is a huge step up in terms of user experience when compared to scanning QR codes. A bonus for me was getting to know some of the local businesses around the Isle of Man and watc..

Leave a Reply

Your email address will not be published. Required fields are marked *