Challenge

Failure of the Blockchain Ponzi Structure

Cryptocurrency services such as Ponzi-type mining, staking, and referral rewards, which attract investors without much profit on the blockchain project, have provided a boom in the blockchain market over the past five years. However, through the recent fall of Terra, which ranked fifth in market value, we recognized the big problem with Ponzi-type services. The Terra Project initially received enthusiastic response from many investors, which though have not generating any profits, but introduced a farming-type staking method called 20% return payment in Ponzi form through algorithmic stable coin (UST) and utility coin (LUNA) linkage, but today it has shaken the global block market with the fatal drawback of unsustainable without new investors.

This is not limited to the Terra Project. The current mainstream business model of the blockchain market, such as mining revenue and staking interest income as DeFi, is also a structure in which coins are earned from coins, and all newly issued coins can be seen as interest generated without any special profits. This is the biggest obstacle that all companies and foundations running blockchain services must resolve. To solve this problem, cryptocurrency must be transformed into a real digital asset that can be used in the real world, not just as a means of investment.

Unclear information on use of donations

Donors have the right to ensure that their donations are used for a purpose. While the ‘Donor's Rights’ movement is active around the world, not many non-profit organizations respond to the movement's policies. Donations are money created based on trust, and donations are closely interactive between donors and recipients. It is based on mutual trust that donations will be used well for the original purpose. Therefore, donations cannot be sustainable if trust and communication between the two are broken. The giving side and the receiving side must know and handle each other well for what and how to use it, and the formation of trust based on "transparency" is most important in order for the donation culture to continue and spread.

The irrational conflict structure of the online advertising market

While the online advertising market grew rapidly for a short period of time, internal and external conflicts continued, and few legal and institutional solutions such as research on online advertising legislation, establishment of regulatory grounds, and establishment of revitalization policies were actually proposed. The representative conflict structure is, externally the conflict between companies and companies, between broadcasting and online advertising companies, between advertising agencies and media companies, and internally between advertisers and media, and between users and advertisers.

The common points of online advertising conflicts are that most of them are small cases, conflict between small advertisers and agencies, and that unlike existing broadcast advertisements, adjustment decisions that reflect the characteristics of advertising products are needed. However, when small business owners sign small advertising contracts, it is difficult to understand the characteristics of online advertisements such as how to pay advertising fees, check the unit price of advertisements, and the level of postings, also it is difficult to check whether advertisements are continuously executed under the contract. Therefore, it is necessary to create various transparent advertising environments to prevent damage to small business owners due to unfair advertising contracts through activities such as production and distribution of standard contracts, promotion of advertisement types, and standardization of dispute cases.

Distortion of NFT Market in Digital Products

The NFT(Non-Fungible Token) service, which combines digital products with the representative technology characteristics of blockchain "non-Fungible," is one of the most growing business groups in recent years. As NFT is still an early-growth industry, many problems have been identified. In particular, recently, a large number of NFTs worth about $750,000 were stolen from OpenSea, the world's largest NFT exchange. In addition, one of the most common problems is the unauthorized copying and selling of NFTs, or the creation of NFTs with content products that do not own. Copyright is also a sensitive issue. NFTs can be issued at will by anyone, and once they are made, they cannot be forged, but there is no way to verify that the person who issued is really copyrighted. There are frequent cases where people who simply convert other people's works into digital ones benefit. And there's no other way to use this product except for NFT investment.

The root cause of this problem is that it is difficult to prove the existence, utility, or value of the product by linking digital products, not real products, with tokens. To solve this problem, only provable real products and blockchain connections will improve the distorted NFT market environment.