Crypto Financial Innovation Just Getting Started

in LeoFinance6 months ago

The cryptocurrency industry often discusses the potential that exists. Often, when dealing with a new technology, the opportunities are enormous. One of the main reasons this is the case is because the industry being affected stagnated for a long time. Suddenly, a new technology can be taking on something that operated in a similar manner for the past 100 years.

When it comes to money and finance, we are seeing this situation starting to play out.

Certainly, over the last few decades, there were many innovations in the financial world. There is little debate about the impact of FinTech upon the traditional banking system. However, when we get to the core, little changed. The biggest difference is in the delivery mechanism, no so much in altering the core financial system.

This is starting to change. Cryptoeconomics introduces an entirely new technology that looks like it can upend what we are accustomed to. This is no different than what mobile computing did to the world.

@theycallmedan put up an interesting post that epitomizes what is taking place. It is evident that few understand what it means at this point since it did not make a whole lot of sense. There was something about Speak (which we can presume is 3Speak), a voice box, and a part of the brain. Obviously, the last two represent something, which is unclear at the moment.

Nevertheless, there was something that is vital in there.

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Notice the part about infinite funding equating to no inflation. This is crucial.

Naturally, this is not much clearer than the rest of the post which will be, evidently, further explained in about 10 days.

Without knowing the details, what we do know is this team figured out a way to fund their project without inflation, on an ongoing basis. It obviously has to do with permanently locking up HIVE, which could impact the value on that token.

Is this a radically new idea that they happened to come upon? We will have to wait to find out. That said, it does show there are people out there seeking innovative ways to address some of the issues that plague us. Certainly, this is not something you see being posted on Marketwatch or Bloomberg. The present financial system is not looking for ways to infinitely fund things without inflation. In fact, the central banks are trying to do the exact opposite: they are desperately looking for inflation.

What is interesting is that technology, by its very nature, is deflationary. Since cryptocurrency, itself, is a technology, we might be entering a stage where the core element is deflationary simply by its existence. Isn't that a radical notion?


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The world has a massive distribution problem when it comes to wealth. Even within developed nations, we see it vary greatly. This is taken to another level when we start to examine the plight of people in different parts of the world.

Cryptocurrency offers a way out of this since it allows for experimentation and innovations. There are many who are very comfortable with the existing financial system and do not want it changed. That is sensible since they are the ones who benefit from it the most.

For everyone else, it is a matter of suffering along. This is where technological advancement needs to enter the picture. We are now at a point where the world needs an upheaval.

It is easy to forget that Bitcoin is only about 12 years old. Taken a step further, innovation really only began within the last 5 years. In fact, we only recently started to see the financial minds entering this industry on a larger scale. Before that, it was mostly made up of technical people.

With any technology, the end results are often different than what was initially thought. Few are able to see the eventual evolution of any technology. A great deal of this is due to the fact that innovators tend to take things in many directions. This is why the results can be so varied.

Since it is obvious that finance is at the core of most of what society does, a complete overhaul in the financial system will result in massive changes for society. We know there will be blowback from those in power. This is always the case.

However, with most things, if the benefits are there, it is an easy sell. Show people a better way to do things that provides then with a plethora of opportunities and they will take it. As long as it is easy for most to understand and utilize, it is a slam dunk.

We know there is a long way to go before cryptocurrency has the impact that many are projecting. Nevertheless, this can be sped up if the pace of innovation radically accelerates.

Are we to that point yet? It is never easy to tell without using hindsight. However, it does appear things are speeding up.

That said, the party is just getting started. It is will interesting to see where we are with this in, say, 5 years.


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Much of this innovation will have to fight the existing government regulations and their cronies. When Microsoft was spending their time innovating and competing in the markets instead of spending on lobbying, they got targeted by DC lawyers. Microsoft had to pay millions for the crime of providing a web browser for free.

They learned their lesson and started spending hundreds of millions of lobbying and not so much on innovation and competition after that. That's the story with many tech firms. They become too connected with the swamp.

Much of the demand for crypto is coming from banks and investment funds that are drowning in privacy violations and bureaucracy. Most people who get into crypto won't even hold their own keys. We really need to triple down on building easy to use decentralized infrastructure with better UI/UX. @leofinance is actually doing this with their new signup by making what is basically a funnel that gets people into owning their own keys.

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We really need to triple down on building easy to use decentralized infrastructure with better UI/UX.

This is 1000% accurate. We need to keep innovating and building a lot of open source, decentralized solutions. If that is accomplished, there is no one point of vulnerability.

With the Microsoft situation, that was one company. There is no one company to go after with blockchain. Also, if there is a particular UI, if things are open source, wiping out one UI will do not good since 2 others pop up.

I am looking forward to what 3Speak has planned with decentralized video storage. That could be enormous and a huge step forward.

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I am looking forward to what 3Speak has planned with decentralized video storage. That could be enormous and a huge step forward.

There is the added advantage of being able to lean from projects that came before such as FileCoin, Sia, Storj etc.

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That does seem like a kind of cryptic Tweet. I am glad you were potentially able to make a bit more sense of it than I was. What do you think the benefit is of permanently locking Hive versus just burning it? Or is it pretty much the same thing?

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Considering I have not much idea what Dan is referring to, it is anyone's guess. Sadly, we will have to wait 10 or so days to find out. This is the epitome of a teaser.

I would say a permanent lock is similar to a burn. However, there is a difference. With a burn, it is 100% gone. It sounds like with this, a permanent lock is going to still provide benefit.

Hard to tell since Dan purposely did not release too many details.

This all pertains to the first video put out when discussing the decentralized video storage and such.

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Ah, okay. You seem to have a better handle on it than me! :) I appreciate you covering all of this stuff. I am still kind of learning as I go.

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There is little debate about the impact of FinTech upon the traditional banking system.

I would like to refer to this small example, found by me. I have a card from a FinTech that had many more built-in facilities than the card from my bank, ING Bank. After a while I found some of these facilities on the ING card. It's not a big change, but still the bank understood that it must at least keep up with FinTech, with the progress of technology. I say that it is a step towards change that can also come from the classic banking system. Who probably sees where the danger is coming from.

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It is true that FinTech did push banking forward. You see this in ways such as you mentioned.

However, FinTech did a number on the banking industry. In the US, more than half the mortgages originate outside the banking system. FinTech allowed for the establishment of what they call the "shadow banking" system.

It is only growing too.

Crypto will likely add a third element to the equation, one that could even be more disruptive than all of FinTech.

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"shadow banking" system.

Interesting and suggestive name.

However, with my FinTech card called Revolut I can buy shares directly from American companies, I can buy crypto (but I can't send it to another wallet) and I can buy gold. Many facilities over my card from the traditional bank. So FinTech keeps its lead but I don't know how secure the funds are and how I can recover in case of fraud. In this area, the bank card seems safer.

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Cryptocurrencies are clear an innovation, but in order to prove themselves they need to reach a certain maturity and growth. And with that comes also complexity which takes time to be solved - let's just look at Ethereum challenges. What I love about the times that we are living is that traditional businesses started to adopt cryptocurrencies and with that they boost their income channels and find new use cases.

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Certainly, over the last few decades, there were many innovations in the financial world. There is little debate about the impact of FinTech upon the traditional banking system. However, when we get to the core, little changed. The biggest difference is in the delivery mechanism, no so much in altering the core financial system.

Agree, the issuing of some credit notes/banknotes, was solely in the hands of the states or their approved partners. With crypto, let's name them trust certificates, not banknotes, can be issued by other entities and can be directed more efficient for needs, having a greater impact.


The tweet of Dan, is way to cryptic, but you are definitely on to some thing. Patience is a virtue that, at least I need to learn and so I will wait the 10 days till it spoils out. :)

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Patience is a virtue that, at least I need to learn and so I will wait the 10 days till it spoils out. :)

Well it isnt as if we have a choice. We could jump up and down like kids wanting to know but the answer will not be revealed to Hivefest. So we either accept it or drive ourselves nuts.

Either way, we are not going to get the answers before they are released.

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From where I am sitting, it seems that our society suffers from living inside a system that states — in not so many words — that "Growth is God."

That is, every aspect of our system — and particularly our financial system — is dependent on this notion that if we have 1X resources (money, lifestyle, status, widgets, whatever) this year, we "must" have 1.05X of them next year or we have somehow "failed." But that's a paradigm that — beyond simply the base growth of a population, IF there is any — is ultimately doomed to failure... because the only thing you can prop it up with is "air," aka inflation.

Much of this "air" gets snuck by people at a consumer level; your soda bottle looks the same, but it goes from 1/2 liter to 16oz, which the price went up 10 cents.

The problem is actually made worse by the group of people we loosely call investors, because they typically expect to make a rate of return that's greater than inflation, and so the small change in that soda bottle gets funneled from millions of "average Joe's" to a small number of "investors," and there's our growing income/wealth inequity.

Economists and so-called "experts" avoid looking at this, because they avoid talking about 20-year and 50-year projections... they like to talk about next year because the negative-effect numbers look modest.

The promise of crypto... at least from my limited perspective (and I am NO financial expert!) is that suddenly the "end user" and the "investor" can become one and the same. That's just one.

How to untrain the world and the "establishment" from the idea that growth/inflation is "God" will be a challenge...

=^..^=

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I have a different take on things. Growth is not necessarily only tied to inflation and can outpace population increases.

Technology is a prime example of what an provide growth rates greater than that, in many instances requiring less than was before. The digitization/computation boom is the epitome of this.

We will end up seeing this going forward in a field such as energy. What happens when we have unlimited or near unlimited energy?

With that, money is really just a tool for collaboration. This is why people who are constantly looking for inflation, especially in the last few decades, are always wrong. Technology obliterates their entire premise.

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It will really take a while before many others accept and embrace these innovations.
Cryptocurrency still has a long way to go, but slowly I believe it is getting there

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Dan's post is very cryptic and apparently not very sensible but we know Dan and he's certainly not crazy.

His post is a concise schematic of something that will be explained shortly and hopefully it will have the effect of a firework at the end of the year 🎇🎆

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I feel very certain that the post is based upon a solid foundation of what is being put together. It is not some pie in the sky, off the cuff post.

We have known for a month they are working on something major, a huge upgrade to 3Speak, and he offered a bit of a teaser, albeit in code.

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For those of us that are into crypto, it may seem that things are not moving as fast as they could but that's only for us. Many other people are joining crypto every day and I think it won't be long until one day we'll wake up to a whole different world out there. Then we will look back with joy!

Oh, and by the way, I love your new banner!

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Yes i think we have a long way to go. For some reason many of the new crypto innovations that hit the market each year that are suppose to change the future of finance. They often times feel gimmicky to me and don't quite achieve their goals. It would seem this happens every year. We have this next new big thing.

Alot of attention this year was on defi and nfts. Defi is certainly something there in the realm i believe of time locking deposits. Seems to work for products like cd's as such. However many of the defi products have played out and felt like ponzi schemes. Certainly not much talk about them now as the beginning of the year.

Inflation is a problem in many crypto projects. However i don't think inflation is ever going to be a bigger issue than solving network issues like growth or simply having a good way forward to help us get a much more accurate value of your product. I'm afraid locking up coins i don't know the value of doesn't really help me alot. So many crypto projects become like shell games in how they handle their inflation. Inflation i believe has to be different in crypto and handled relational to the growth rate. If you have no growth and significant use then i don't think inflation should even be a focus.

So i haven't really seen a product yet in crypto that i felt addresses this well. Some have come close but had other shortcomings. As someone mentioned in your threads alot of what's fueling the demand for crypto is banks and institutions. Not so much who it's meant to be for the people trying to cut out the middle man. So i see that as a huge issue. I don't think it's good at all. However I believe there's going to be products that do it in the future. Which ones who knows.

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