Crypto Maxi, DM always open :) https://twitter.com/divyvaid
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A for AI, Algorithms & Autonomous,
B for Big data & Blockchain,
C for Cloud, Crypto & Cybersecurity.
Fintech is banking, but it’s not the same thing. Fintech Startups don’t want to be banks and banks don’t want to be Fintech Startups.
Think oftraditional financeto be a car travelling from point A to point B at a high speed (10,000 miles/hour) without seat belts on.
Finance on blockchain is now a supersonic jet (100 million miles/second) flying from point A to point B with maximum security.
The point is that it changes everything, literally everything. The entire architecture of money and transactions can be re-imagined, and when implemented and interconnected with other aspects ranging from companies to countries, a trust-free environment is created with real-time settlements that eliminates almost all intermediaries. Which, will give birth to the next generation of Tech Giants, but this time with ethics.
With the growing threat of a future in which machines and banks assist us rather than control us, it’s time to reconsider our banking systems. The power of Blockchain technology is that it enables us to build our own money while maintaining a solid trust-keeping ledger (at least theoretically). In other words, we can take control over how money is created.
But, until that happens, the banks will continue to hold power over us.
Some argue that Bitcoin and other cryptocurrencies are not “real money.” So, exactly what is real money? If you take your banknote and ask your bank for the underlying asset backed by the banknote, you will get a new banknote at best. Currency , like Bitcoin, is merely a medium of exchange. When comparing Bitcoin to any fiat system, Fiat is a system based on trust, a system that you trust, which further trusts a lot of intermediaries to manage your money, whereas Bitcoin is a system based on ownership, where you won’t owe anyone anything or no-one owes you anything, and everything is settled in real-time.
To send Bitcoin, I don’t even need a bank and a government; all I need is you and me and our smartphones, creating a true peer-to-peer network.
Let’s begin from the beginning and look how and why money was created,
Cowrie Shell (referred as CS) was the first known currency.
When the Cowrie Shell was first used by the majority, it was exciting and confusing for many because it was a new and unexplored way to barter. For example, if Person A wants to buy a cup of coffee from Person B, assume he barters coffee beans for a cup of coffee, the weight of coffee beans may differ for everyone because there is no system to validate the transaction. What if Person C is a barber and wants to buy coffee from Person B but doesn’t have any beans? He may have to buy coffee from Person A and possibly give Person A a haircut in exchange for a fair barter, What if Person C requires ten cups of coffee, but Person A does not require ten haircuts in a month to make it a fair barter, so when Cowrie Shells were used as a currency, not only could Person C charge a fixed CS per haircut, but Person D from another country could also purchase the same coffee from Person B with CS. When CS was used at scale, the supply of CS increased dramatically while the value decreased, concluding that they had to charge more CS to cover their expenses.
We live in interesting times. In 2009, when the population was approximately 6.7 billion, there was approximately $35 trillion in circulation. When the population has increased by one billion in ten years, to 7.7 billion, the money supply has increased to $75 trillion. Obviously, not everyone, or even the majority, has doubled their wealth in ten years; it is only a very small fraction of the population.
Integrating blockchain with finance gives an edge over current traditional finance because it is immutable and decentralised by design, which means everything is not only recorded but also tamper-proof, comparable to neurons in the brain, where if one branch of neuron stops working, another takes over, ensuring information flow even in failure.
It is also known as the “Karma” effect, in which every act and thought is recorded and has the same effect, and nothing goes unnoticed. It can never be changed once it has been completed.
Once something is done in a decentralized environment it can never be changed, One can go back in time and change future from past, thereby coming to a different present, it’s impossible.
Lets take Lee as an example. Lee is an 18-year-old girl who lives with her grandparents. She may have never visited a bank branch, but she has access to all, or possibly more, banking features on her mobile device. She takes a peer-to-peer loan by clicking some buttons on some apps, and she makes automated investments by automatically following other traders and bot-trading. Also invests in Bitcoin, despite using only a few physical coins. Her grandparents are amazed by the technology and are puzzled as to how it is even possible. In the same way that Lee is puzzled about how “old-fashioned” finance worked!
Java may be just the name of a coffee for Grandpa, but for tech-savvy Lee, Java is also a programming language!
Don’t get me wrong here. We can all agree that banks are a pain and that the economy requires a shakeup. However, we must keep in mind that a large number of people rely on our current banking system for their daily lives and livelihoods.
While I appreciate anything short of a complete shutdown of the financial sector (it’s potentially dangerous; I just don’t want to see my life in total mess), I’d say that if you consider this with an open mind, you’ll be pleasantly surprised by what happens when Blockchain technology and Quantum Computing are applied in tandem.
I’m optimistic, and I think we can all be optimistic too. The advancements that have been made are rather impressive, and I’m looking forward to the day where we look back on banks as dinosaurs, Giant and extinct.
Cheers!
Here’s my twitter handle to stay connected :)
A for AI, Algorithms & Autonomous,
B for Big data & Blockchain,
C for Cloud, Crypto & Cybersecurity.
Fintech is banking, but it’s not the same thing. Fintech Startups don’t want to be banks and banks don’t want to be Fintech Startups.
Think oftraditional financeto be a car travelling from point A to point B at a high speed (10,000 miles/hour) without seat belts on.
Finance on blockchain is now a supersonic jet (100 million miles/second) flying from point A to point B with maximum security.
The point is that it changes everything, literally everything. The entire architecture of money and transactions can be re-imagined, and when implemented and interconnected with other aspects ranging from companies to countries, a trust-free environment is created with real-time settlements that eliminates almost all intermediaries. Which, will give birth to the next generation of Tech Giants, but this time with ethics.
With the growing threat of a future in which machines and banks assist us rather than control us, it’s time to reconsider our banking systems. The power of Blockchain technology is that it enables us to build our own money while maintaining a solid trust-keeping ledger (at least theoretically). In other words, we can take control over how money is created.
But, until that happens, the banks will continue to hold power over us.
Some argue that Bitcoin and other cryptocurrencies are not “real money.” So, exactly what is real money? If you take your banknote and ask your bank for the underlying asset backed by the banknote, you will get a new banknote at best. Currency , like Bitcoin, is merely a medium of exchange. When comparing Bitcoin to any fiat system, Fiat is a system based on trust, a system that you trust, which further trusts a lot of intermediaries to manage your money, whereas Bitcoin is a system based on ownership, where you won’t owe anyone anything or no-one owes you anything, and everything is settled in real-time.
To send Bitcoin, I don’t even need a bank and a government; all I need is you and me and our smartphones, creating a true peer-to-peer network.
Let’s begin from the beginning and look how and why money was created,
Cowrie Shell (referred as CS) was the first known currency.
When the Cowrie Shell was first used by the majority, it was exciting and confusing for many because it was a new and unexplored way to barter. For example, if Person A wants to buy a cup of coffee from Person B, assume he barters coffee beans for a cup of coffee, the weight of coffee beans may differ for everyone because there is no system to validate the transaction. What if Person C is a barber and wants to buy coffee from Person B but doesn’t have any beans? He may have to buy coffee from Person A and possibly give Person A a haircut in exchange for a fair barter, What if Person C requires ten cups of coffee, but Person A does not require ten haircuts in a month to make it a fair barter, so when Cowrie Shells were used as a currency, not only could Person C charge a fixed CS per haircut, but Person D from another country could also purchase the same coffee from Person B with CS. When CS was used at scale, the supply of CS increased dramatically while the value decreased, concluding that they had to charge more CS to cover their expenses.
We live in interesting times. In 2009, when the population was approximately 6.7 billion, there was approximately $35 trillion in circulation. When the population has increased by one billion in ten years, to 7.7 billion, the money supply has increased to $75 trillion. Obviously, not everyone, or even the majority, has doubled their wealth in ten years; it is only a very small fraction of the population.
Integrating blockchain with finance gives an edge over current traditional finance because it is immutable and decentralised by design, which means everything is not only recorded but also tamper-proof, comparable to neurons in the brain, where if one branch of neuron stops working, another takes over, ensuring information flow even in failure.
It is also known as the “Karma” effect, in which every act and thought is recorded and has the same effect, and nothing goes unnoticed. It can never be changed once it has been completed.
Once something is done in a decentralized environment it can never be changed, One can go back in time and change future from past, thereby coming to a different present, it’s impossible.
Lets take Lee as an example. Lee is an 18-year-old girl who lives with her grandparents. She may have never visited a bank branch, but she has access to all, or possibly more, banking features on her mobile device. She takes a peer-to-peer loan by clicking some buttons on some apps, and she makes automated investments by automatically following other traders and bot-trading. Also invests in Bitcoin, despite using only a few physical coins. Her grandparents are amazed by the technology and are puzzled as to how it is even possible. In the same way that Lee is puzzled about how “old-fashioned” finance worked!
Java may be just the name of a coffee for Grandpa, but for tech-savvy Lee, Java is also a programming language!
Don’t get me wrong here. We can all agree that banks are a pain and that the economy requires a shakeup. However, we must keep in mind that a large number of people rely on our current banking system for their daily lives and livelihoods.
While I appreciate anything short of a complete shutdown of the financial sector (it’s potentially dangerous; I just don’t want to see my life in total mess), I’d say that if you consider this with an open mind, you’ll be pleasantly surprised by what happens when Blockchain technology and Quantum Computing are applied in tandem.
I’m optimistic, and I think we can all be optimistic too. The advancements that have been made are rather impressive, and I’m looking forward to the day where we look back on banks as dinosaurs, Giant and extinct.
Cheers!
Here’s my twitter handle to stay connected :)
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