NFTs, cryptocurrency, blockchain, and more are disrupting the industry and causing market disruption, prompting players to assess what the landscape might look like moving forward. This led us to ask: How will innovations in technology affect the industry? How will these innovations affect other markets?
DeFi. BaaS. new banks. BNPL. Although these terms seem fanciful at first glance, they represent the future of finance and digital technology as we know it. And as we learned from WIT expert and popular technology analyst Scott Steinberg, NFTs, cryptocurrencies, blockchain, and more are financial technologies that are disrupting the industry and causing a market shift, leading players to assess what the landscape might look like. Move forward. This led us to ask: How will innovations in technology affect the industry? How will these innovations affect other markets?
Evolution of NFTs
NFT tokens, or non-fungible tokens, have dominated the headlines for the past two years and have become a popular topic of discussion among artists, celebrities, and – you guessed it – fintech companies. Technology as described interested in tradeA unique digital asset that represents ownership of real-world items such as art, videos, music, etc. NFT uses the same Blockchain technology that powers cryptocurrencies, but it is not a currency. “So while NFTs are not financial products, they operate from the same platforms. And that underlying technology provides opportunities for innovation across industries, especially finance.
At its peak, everyone wanted to get (or make) their own NFTs. But lately, Steinberg feels this technology is being met with increasing amounts of scrutiny, and for good reason. Over the past several months, we’ve seen how easy it is to pass these digital assets on and realize how much their value is based on the supply and demand of the piece rather than the actual monetary value. But from now on, Steinberg expects a turnaround.
He explained that for now, NFTs are still in their early stages of development; Everyone is trying to figure out how to make use of them appropriately. Companies ask “How can we monetize this in a way that is acceptable to consumers, and what will this technology fundamentally add to the online experience?” Currently, Steinberg is seeing an increase in companies trying to play in the space although it hasn’t always been well received. But overall, he believes that the NFTs will be part of the funding going forward, whether or not that becomes large. And as we’ve seen so far, the space is likely to be filled with infringement litigation, false advertising, and more.
But what about the blockchain technology on which these tokens are built?
Blockchain to break down barriers
To assess the future of blockchain technology, we must first answer the question: “What is a blockchain?” According to Investopedia, a blockchain is “a distributed database or ledger shared between nodes of a computer network.” Blockchain offers a secure platform for storing data and as mentioned above, it plays an important role in supporting NFT systems and cryptocurrencies. But Steinberg sees this technology as playing a bigger role in the future of finance.
To start, he sees blockchain solutions, smart contracts, and the like as offering a digital ledger system where you can track the movement of almost any asset around the world, allowing for a seamless transfer of funds or equity to be faster and more affordable. But although this solution is believed to be protective, Steinberg feels companies are not focusing on real use cases for this technology and how it might create security risks in the future.
Steinberg stated, “Many providers are currently focusing on peer-to-peer payments solutions and fast moving money online through apps or cryptocurrencies. But, I think they may not have focused so much on issues with new hardware being able to store this information. and share it.” For example, your credit card has become more intelligent and able to store information; You will live your entire digital life on these devices from now on, presenting the possibilities of fraud, identity theft or interoperability challenges, especially with the increasing use of biometric technology.
Biometric data errors
While funding fraud can be risky on the blockchain, Steinberg also feels that many companies in the fintech space have not given enough thought to the advent of biometric technology and how this digital identification system could impact the industry. Your digital ID travels wherever you travel, even in the metaverse and virtual worlds, and bypasses fraud that may occur with a simple stolen password. Steinberg laments, “It’s one thing if someone steals my password – what happens if they repeat my retina or fingerprint scans when that’s how I entered my fintech payments and accessed my bank account? And what happens when we get in To a realm of a deep fake where someone can scan your digital photo, create a twin, and then present themselves to the world as you are in a way that’s so realistic it feels like we’re talking to each other today?”
The issues raised in this area of fintech will only expand as companies race toward a digital and online future where many different devices and touch points will use peer-to-peer, online, and crypto-based payments. Steinberg feels that again, this is an example where the use cases and challenges have not been fully considered. And when it comes to litigation, disputes over this shift, by Steinberg’s definition, will keep lawyers in business for many years. But right now, what is being done in the industry to prepare for this type of fraud?
Biometric fraud prevention
When asked about security measures related to biometric fraud, Steinberg said that almost no measures were implemented. He hasn’t seen security measures designed to defend against fraud, opening the door to hackers who can use consumers’ vital data, for example, to break into ATMs and steal money. Today, instead, we’re seeing a lot of preparation on how to use these technologies and their proponents. We’ve increasingly integrated it into airports, factories, offices and manufacturing centers around the world, dumping more and more information for technology.
But as Steinberg said, more and more governments will switch to these digital forms of identity, and that will pose enormous challenges ahead. The caveat is: if it’s high tech or if it’s online, it can be stolen, it can be cracked, and it can be duplicated.
If you missed additional insights from our conversation with WIT-affiliated expert Scott Steinberg, see his expert opinion on the wireless industry, virtual reality, and the rise of artificial intelligence. Mr. Steinberg has been hailed as one of the world’s best-known futuristic and strategic innovation advisors. It has been featured in hundreds of media from CNN to TIME to The Wall Street Journalwith him being described in the Fortune 500 list as a “Distinguished Personality in Business and Technology” and “Best Designer to Follow.”
The content of this article is intended to provide a general guide to the topic. It is recommended to take the advice of specialists in such circumstances.
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