【Observation】Do you still think blockchain is a useless technology? These five applications may change your perspective.

Today, we won't discuss investments or complex technical aspects. Instead, we'll simply share some blockchain applications that are suitable for beginners to understand. Perhaps you will discover that blockchain and cryptocurrencies are not what you initially thought.

Many people still hold a negative impression of blockchain and cryptocurrencies, associating them with speculation, gambling, and scams, believing that these are worthless virtual products that cannot bring any real change to the world. However, in reality, in recent years, there have been many interesting and practical blockchain and cryptocurrency applications. While these projects may not be groundbreaking "killer apps" that instantly become mainstream, they do reflect the core values of blockchain and cryptocurrencies in a practical sense, effectively addressing real-world pain points.

Decentralized P2P Lending

Decentralized lending platforms can be understood as P2P lending without intermediaries. Borrowers deposit stablecoins (imagine them as dollars) into smart contracts on the blockchain; lenders must collateralize digital assets in the contract to borrow stablecoins. Due to the lenders needing to over-collateralize, even if the value of the digital assets fluctuates, it ensures that the borrower can always retrieve the principal and interest.

Traditionally, P2P lending requires centralized third parties to operate, offering better rates than banks to borrowers. However, the credibility is not as high as banks, posing a certain level of "trust risk."

Through decentralized lending platforms like Compound or dydx, users' assets are no longer held by centralized third parties such as banks or P2P lending service providers but by blockchain smart contracts. This minimizes the risk of operators absconding with funds. Some used to worry that significant price fluctuations in collateral could lead to abnormal liquidation, causing losses for borrowers. However, even during the near-halving market crash in March this year, there were no losses for borrowers, indicating that these platforms have enough maturity and security.

Taiwan has always had a high savings rate, coupled with the global economic downturn. To avoid deflation, countries worldwide have reduced deposit rates. In March this year, the deposit rate at Taiwan Bank fell below 1%. In this environment, even if you are not interested in investing in cryptocurrencies, decentralized lending platforms are still an application worth exploring.

Zero-Cost Lottery

PoolTogether is a decentralized app (Dapp) derived from decentralized lending platforms, resembling a lottery yet similar to a rotating savings and credit association (ROSCA). Purchasing a lottery ticket in PoolTogether costs 1 USD, and all funds are pooled into a fund controlled by a smart contract. These funds automatically earn interest in a decentralized lending platform. Every week, a winner is selected to receive the interest accrued over the week. Historically, the highest prize has exceeded $2000. The total funds in the pool currently amount to approximately $862,000.

PoolTogether's main attraction is that participants can enjoy the lottery without spending money, only bearing the opportunity cost of purchasing a ticket. One might think that if a whale buys many tickets, their chances of winning would be high. While this is true, whales typically do not do this, as the opportunity cost is too high. If a small player wins, it would render the whale's efforts futile. For small players, the participation of whales is beneficial. Although the winning odds decrease, the total prize pool increases. Taking a chance for a bigger reward is the essence of PoolTogether.

In the real world, projects like PoolTogether are most afraid of platform operators absconding with funds, a common experience for many. However, PoolTogether, built on blockchain, minimizes user trust risks, allowing the public to experience innovative and secure lottery and fundraising methods.

Liking and Tipping

With the development of the internet, more content creators such as self-media, writers, graphic designers, and video creators are emerging online. Content creation and user feedback are interdependent. The more users are willing to reward creators, the more creators are motivated to provide quality content.

The concept of Likecoin is simple: "Allow readers to directly tip content creators at a low cost." Users can choose to support readers without paying, or become a "Likemaster" by spending $5 a month. This not only increases their influence in the ecosystem but also boosts the article's profitability.

For journalists, self-media writers, or amateur content creators, Likecoin is an excellent incentive because it provides additional income. This motivates creators to produce higher-quality content, allowing readers to enjoy better works. With blockchain technology realizing the vision of a value network, such innovative applications can flourish.

However, Likecoin still has some drawbacks, such as consensus and liquidity issues with its token. Switching to Bitcoin may enhance its chances of adoption. As Cuy Sheffield, head of Visa's cryptocurrency division, mentioned, Bitcoin paired with the Lightning Network for micropayments can bring significant changes that fiat currency cannot achieve.

E-commerce Bitcoin Rewards

Lolli may not be a familiar application to many, as it is not an e-commerce platform. However, it allows users to earn Bitcoin as a reward for shopping on various e-commerce platforms. It is similar to the widely advertised Shopback but with Bitcoin rewards.

While the difference lies in Lolli's Bitcoin rewards versus Shopback's cash rewards, there are several advantages. For instance, as Shopback is a Singaporean company, cashback requires an 8-14 working day wire transfer time. In contrast, Lolli provides Bitcoin directly, allowing withdrawals in about 30 minutes.

Bitcoin still feels distant to the general public. Even if they are interested, they may not know where to start. For those interested in investing in Bitcoin but unsure how to begin, Lolli is an excellent application. Users can become Bitcoin holders by simply shopping as usual, smoothing the learning curve. Moreover, such applications help Bitcoin become a globally recognized asset, dispersing ownership, weakening whales' pricing power, reducing price volatility, and benefiting the market and users.

Content Creation Platforms with Token Economy Integration

Steemit is a content creation and social platform similar to Medium but integrates token economics and reputation systems. It creates a value network and ecosystem that promotes platform development positively.

Simply put, posting and commenting on Steemit can earn money. However, the earnings depend on the user's token holdings and reputation on the platform. Increasing reputation relies on users' positive interactions, such as posting quality articles or insightful comments. Conversely, users who consistently post low-quality or plagiarized content receive negative reviews, lowering platform reputation and profit potential.

Digital Minister Audrey Tang mentioned in an interview with overseas media Decrypt that existing social platforms struggle to channel people's anger into constructive behaviors. When faced with conflicting content online, people often resort to anger instead of rational communication. Tang has been seeking viable technologies to guide online interactions towards "consensus" rather than "division."

Although Steem has operational flaws, its concept aligns with Tang's advocacy. Perhaps one day, such blockchain applications will replace familiar social platforms, amplifying rational voices and mitigating meaningless disputes, ultimately addressing the escalating societal division.

"Innovation" Quietly Changes Your Life

While this article only outlines five straightforward blockchain applications, there are many more unmentioned projects. In the future, a diverse range of innovative applications will emerge and become part of our lives. A decade ago, we never imagined using our phones for banking or having fried chicken delivered by a swipe on our phones.

Blockchain technology is not as distant as imagined. Perhaps one day, you will realize it has become an indispensable part of your life without you even noticing.