The alpha created by Cryptocurrencies / Blockchain technology can be summarized into the following three categories.

1. Decentralized System

2. Public Database

3. Global Programmable Money

The following is an explanation of each item.

First, the Decentralized System is the value of being able to create a "system without an administrator".

To be precise, it is a system in which the administrator can be infinitely scaled and distributed, i.e., a system in which there is no central administrator because everyone becomes an administrator.

The field of decentralized systems has existed in the past, but by incorporating the economic incentive of native currency into it, we have created a situation in which anyone in the world can become an administrator, but also has the incentive to do so. This is the first time a sustainable and open decentralized system has been realized.

This decentralized system is just like public goods and nature.

The state in which the system exists in the world as a natural object is the innovation made possible by blockchain technology.

This characteristic of the system being without an administrator but existing continuously like a natural object also means that it is an "unstoppable" system.

This is why Bitcoin has been able to survive as a universal currency as the antithesis of existing finance and the state.

The characteristics of a decentralized system can be effectively utilized in services that serve as an antidote to control by a massive power.

For example, Bitcoin and Defi.

Secondly, the Public Database is the value of making it possible to "store data on the network" for the first time in the world of the World Wide Web.

Until now, the Web world has used "stateless" protocols to transmit information, and when data was to be stored, it always had to be stored on a server set up by someone somewhere.

This is the reason why, as data on the Web exploded with Web 2.0, data became centrally managed by huge technology companies as service providers.

When Public Database is incorporated into the Internet and widely spread as Internet Database, data that has been individually managed by service providers will become Open and Public, and anyone will be able to directly acquire, link, and utilize the data. The characteristics of a Public Database are the same as those of the Internet.

Of course, it is not good if all data is open, so it is essential that privacy-related technologies be applied here.

The characteristics of a Public Database create the merit called "Composability" and can be effectively utilized in services where value can be created by interoperation of data.

Examples include DID, Onchain SNS, and Onchain Brand and Game by NFT.

Third, Global Programmable Money is "the invention of a programmable and globally uniform money standard”.

The conventional money and financial systems have a very long history, and there are many legacy parts in the Internet-native world.

However, there are still many situations in which money can only be transferred in small amounts, and international money transfers must still be made using a bank account with high fees. Some advanced digital banks and credit card services are working on providing APIs, but it is almost impossible to manipulate these money operations programmatically.

The exception to this is services such as Stripe, which offers a rich API for credit cards, a payment method that can be used almost universally. However, in addition to the fact that there are still countries and payment methods that cannot be handled.

In addition, another major disadvantage is that money is disconnected from the financial markets behind it. The essential backbone of finance is liquidity, and it is the existence of this liquidity that allows not only real demand money but also investment and speculative money to flow in and make money flow more smoothly. There are functionality and utility that cannot be provided by being disconnected from this liquidity.

Thus, existing finance and the fintech services on top of it have limitations because they are built on legacy and analog foundations.

Cryptocurrency, by contrast, is a digital scratch from its birth.

From the beginning, the currency has existed as data that can be handled directly by a program called a smart contract, and it is a globally standardized currency.

It is a financial system where anyone in the world can write a few lines of code and deploy it, and money can be handled programmatically at an overwhelmingly low cost.

In addition, since the Defi Protocol, from exchanges and lending to options trading and interest rate swaps, exists on the network, it is possible by default to access investment and speculative money as well as real demand money.

The characteristics of Global Programmable Money can be effectively utilized in Defi services that create finance itself or democratize financial functions. For example, Flash Loan, which handles money atomically in a single transaction, is a Cryptocurrency invention that utilizes the characteristics of Global Programmable Money.

Also, Creator Finance, Crowdfunding, and micro finance, such as Mirror, which is writing this Blog, are good matches in the context of democratization of finance.

These are the three alphas created by the technology Cryptocurrencies / Blockchain.

So what does the future look like in the Web3 domain, built on Blockchain, where such alpha has been created?

The following describes the future realized by "3. Global Programmable Money," which will have the greatest impact on users of the Web, which will apply to many readers.

The "Digital Scratch and Fragmented Financial Protocols - Programmable Money" will enable individuals, products, and even web pages, which are smaller entities than the "legal entities" of the past, to use finance.

The democratization of finance will occur through the synergistic effects of DeFi, which enhances liquidity, the backbone of the financial side, and the use of FT and NFT for the long tail on the real demand side.

On the financial side, the development of lending and derivatives, in addition to exchanges and trading, will increase liquidity, thereby reducing costs and risks and allowing smaller entities to access finance.

On the other hand, on the real demand side, in addition to creators issuing and selling NFTs, etc., more and more services will be available to finance products and smaller units. In the case of blogging services, this could be done by converting articles into NFTs or by issuing FTs for the blog itself.

Currently, due to financial regulations, it is often difficult to issue dividends to token holders, but if it becomes possible to issue dividends after coming to an agreement with regulations, it will finally be possible to invest in youtubers, their videos, bloggers, and their articles that will become popular and receive dividends, just as if investing in a company.

This will allow creators to raise money from other investors, whereas in the past they could only raise money from their pure fans.

In this way, finance will be democratized through both the increase in liquidity through the development of DeFi and the use of FT and NFT in the long tail on the real demand side.

You will be able to fund anything, invest everything on our Web.

Finance is melting into the Web.

https://twitter.com/etaroid

Not financial or tax advice.

Thanks for reading.

The alpha created by Cryptocurrencies / Blockchain technology can be summarized into the following three categories.

1. Decentralized System

2. Public Database

3. Global Programmable Money

The following is an explanation of each item.

First, the Decentralized System is the value of being able to create a "system without an administrator".

To be precise, it is a system in which the administrator can be infinitely scaled and distributed, i.e., a system in which there is no central administrator because everyone becomes an administrator.

The field of decentralized systems has existed in the past, but by incorporating the economic incentive of native currency into it, we have created a situation in which anyone in the world can become an administrator, but also has the incentive to do so. This is the first time a sustainable and open decentralized system has been realized.

This decentralized system is just like public goods and nature.

The state in which the system exists in the world as a natural object is the innovation made possible by blockchain technology.

This characteristic of the system being without an administrator but existing continuously like a natural object also means that it is an "unstoppable" system.

This is why Bitcoin has been able to survive as a universal currency as the antithesis of existing finance and the state.

The characteristics of a decentralized system can be effectively utilized in services that serve as an antidote to control by a massive power.

For example, Bitcoin and Defi.

Secondly, the Public Database is the value of making it possible to "store data on the network" for the first time in the world of the World Wide Web.

Until now, the Web world has used "stateless" protocols to transmit information, and when data was to be stored, it always had to be stored on a server set up by someone somewhere.

This is the reason why, as data on the Web exploded with Web 2.0, data became centrally managed by huge technology companies as service providers.

When Public Database is incorporated into the Internet and widely spread as Internet Database, data that has been individually managed by service providers will become Open and Public, and anyone will be able to directly acquire, link, and utilize the data. The characteristics of a Public Database are the same as those of the Internet.

Of course, it is not good if all data is open, so it is essential that privacy-related technologies be applied here.

The characteristics of a Public Database create the merit called "Composability" and can be effectively utilized in services where value can be created by interoperation of data.

Examples include DID, Onchain SNS, and Onchain Brand and Game by NFT.

Third, Global Programmable Money is "the invention of a programmable and globally uniform money standard”.

The conventional money and financial systems have a very long history, and there are many legacy parts in the Internet-native world.

However, there are still many situations in which money can only be transferred in small amounts, and international money transfers must still be made using a bank account with high fees. Some advanced digital banks and credit card services are working on providing APIs, but it is almost impossible to manipulate these money operations programmatically.

The exception to this is services such as Stripe, which offers a rich API for credit cards, a payment method that can be used almost universally. However, in addition to the fact that there are still countries and payment methods that cannot be handled.

In addition, another major disadvantage is that money is disconnected from the financial markets behind it. The essential backbone of finance is liquidity, and it is the existence of this liquidity that allows not only real demand money but also investment and speculative money to flow in and make money flow more smoothly. There are functionality and utility that cannot be provided by being disconnected from this liquidity.

Thus, existing finance and the fintech services on top of it have limitations because they are built on legacy and analog foundations.

Cryptocurrency, by contrast, is a digital scratch from its birth.

From the beginning, the currency has existed as data that can be handled directly by a program called a smart contract, and it is a globally standardized currency.

It is a financial system where anyone in the world can write a few lines of code and deploy it, and money can be handled programmatically at an overwhelmingly low cost.

In addition, since the Defi Protocol, from exchanges and lending to options trading and interest rate swaps, exists on the network, it is possible by default to access investment and speculative money as well as real demand money.

The characteristics of Global Programmable Money can be effectively utilized in Defi services that create finance itself or democratize financial functions. For example, Flash Loan, which handles money atomically in a single transaction, is a Cryptocurrency invention that utilizes the characteristics of Global Programmable Money.

Also, Creator Finance, Crowdfunding, and micro finance, such as Mirror, which is writing this Blog, are good matches in the context of democratization of finance.

These are the three alphas created by the technology Cryptocurrencies / Blockchain.

So what does the future look like in the Web3 domain, built on Blockchain, where such alpha has been created?

The following describes the future realized by "3. Global Programmable Money," which will have the greatest impact on users of the Web, which will apply to many readers.

The "Digital Scratch and Fragmented Financial Protocols - Programmable Money" will enable individuals, products, and even web pages, which are smaller entities than the "legal entities" of the past, to use finance.

The democratization of finance will occur through the synergistic effects of DeFi, which enhances liquidity, the backbone of the financial side, and the use of FT and NFT for the long tail on the real demand side.

On the financial side, the development of lending and derivatives, in addition to exchanges and trading, will increase liquidity, thereby reducing costs and risks and allowing smaller entities to access finance.

On the other hand, on the real demand side, in addition to creators issuing and selling NFTs, etc., more and more services will be available to finance products and smaller units. In the case of blogging services, this could be done by converting articles into NFTs or by issuing FTs for the blog itself.

Currently, due to financial regulations, it is often difficult to issue dividends to token holders, but if it becomes possible to issue dividends after coming to an agreement with regulations, it will finally be possible to invest in youtubers, their videos, bloggers, and their articles that will become popular and receive dividends, just as if investing in a company.

This will allow creators to raise money from other investors, whereas in the past they could only raise money from their pure fans.

In this way, finance will be democratized through both the increase in liquidity through the development of DeFi and the use of FT and NFT in the long tail on the real demand side.

You will be able to fund anything, invest everything on our Web.

Finance is melting into the Web.

https://twitter.com/etaroid

Not financial or tax advice.

Thanks for reading.