Cover image: iStockphoto

Sentiments, industry trends, and narratives often sway the blockchain space. We tend to jump onto the "next big thing" only to discover that there’s always something bigger and better than the perceived next big thing. In other words, innovation never stops— new concepts will always create excitement and hype.

From the DeFi boom to the NFT craze to the emergence of SocialFi in recent times, the list is endless. The promise of the Metaverse as the next catalyst for the next bull run (though stifled by the emergence of OpenAI and other AI tools) cannot be ignored. There is no definitive list of all the web3 verticals in the industry, as new ones may emerge or evolve.

The term “vertical” may sound a bit too ambiguous to a newbie, however, there’s no need to fret. In simple terms, blockchain verticals are categories or sectors of the blockchain industry that focus on specific applications or use cases of the technology. These range from finance, art, sports, social media, etc.. In this article, we’ll have an overview of some of the major verticals.

Decentralized Finance (DeFi)

This is undoubtedly the most popular vertical of the blockchain. This sector provides decentralized alternatives to traditional financial instruments such as lending, borrowing, trading, and investing by eliminating the influence of intermediaries like banks.

Non Fungible Tokens (NFTs)

Just as the name suggests, this sector deals with unique and scarce digital assets that can represent art, collectibles, gaming items, event tickets, and more. Examples of these include CryptoPunks, CryptoKitties, NBA Top Shot, etc

GameFi

This vertical combines gaming and finance, allowing users to own in-game assets, earn rewards, trade these in-game assets for money and vice-versa, and participate in governance through blockchain games. Notable among GameFi projects are Axie Infinity, and Gods Unchained.

Image: powered by DALL-E 3

Decentralized Autonomous Organizations (DAOs)

DAOs are self-governing organizations that leverage blockchain technology to create value, collaborate, and achieve their set goals. Here, there is no central authority and decision-making is democratic.

The Metaverse

Touted as one of the “next big things”, the metaverse seeks to create an immersive and interactive virtual world powered by NFTs and the blockchain. These platforms allow users to explore the digital economy viz owning and trading digital assets like lands, avatars, participating in various activities, etc. Examples of these are Decentraland and SandBox.

Regenerative Finance (ReFi)

ReFi, one of the latest kids in the block focuses on sustainable and regenerative finance. Instead of only looking at how much money an investment can make, this sector also looks at how much good it can do for the environment and society. Regenerative finance values natural and social assets based on their positive impact, rather than profit-making.

Image: Pexels

SocialFi

SocialFi applies the principles of decentralization and tokenization to social media platforms, enabling users to monetize their content, reputation, and influence. These platforms create a more open, fair, and user-centric network that gives users more control of their data, identity, and value.

image: tookindstudio

Does clout pay? Well, you’ll never know if you don’t try. Friends.tech took the blockchain space by storm when it launched in August generating millions of dollars in fees within few a months. Data from DefiLllama shows that there are over 1.2m active users on the platform, around $24 million generated in revenue, and a Total Value Locked (TVL) of $47.27 million. These numbers are no mean feat, given the current market situation we find ourselves in.

Infrastructure

There have been arguments at different times on whether infrastructures are vertical since they create the core technologies that enable the functioning of a decentralized internet, such as blockchains, layer 2 solutions, and protocols. These technologies provide the foundation for other web3 applications and services, by ensuring security, scalability, interoperability, and performance. Notable among these infra are Ethereum, and Arbitrum, amongst others.

These major blockchain verticals demonstrate the potential of blockchain technology and its endless possibilities. It keeps evolving providing, solutions to most problems the traditional setup has been unable to solve. The industry is still young and we’ll definitely see more innovations springing up in the future. The beautiful ones are not yet born.