Sharing my macro and regulations reviews on public blockchains, permissionless dapps and commodities.
Sharing my macro and regulations reviews on public blockchains, permissionless dapps and commodities.
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Payments are discrete units sent and received in monthly chunks, and captured by accountants in monthly/quarterly reports. Why? Simply because money is contained in banking and accounting systems that have always worked on such time scales. But, money is fluid, in a continuous stream of cash, flowing in and out. So why aren’t we using a real-time medium to process money transfers?
For Andreas M. Antonopoulos, one of the best educators in the open blockchain technologies space, the implications of real-time accounting and finance will take "fifteen years" to comprehend and will revolutionize peer-to-peer, corporate and nation-state payments. Now, only 5 years after this statement was made, real-time finance is in full thrust. Thanks to blockchains, "programmable money" has been enabled, and cash management capabilities unleashed. We can now perform automated accounting with effective settlements at every block, replacing payroll departments, payroll processors and unlocking new possibilities to innovate personal and institutional finance.
So, what happens when we start streaming money in real-time?
Payroll in real-time is possible
We are working in real-time. Why aren’t we being paid in real-time too? Enabled by crypto, getting paid in real-time will be a game changer for both employers and employees. As the pay comes while the work is getting done, teams and contributors can receive the money they’ve earned whenever they want. Thus, they are better equipped to deal with unexpected costs and have full flexibility in managing their funds.
For employers and their Finance/HR departments, the advantage is frictionless cost-effective administration of recurring payments to one or multiple individuals in a single transaction (setting up a stream and its receiving wallets). They can also onboard new employees faster by swiftly adding their wallets to the stream, or remove any at any time by revoking a wallet or by stopping a stream and getting back the funds that were yet to be streamed. Streaming money grows mutual employer/employee trust, empowers and motivates teams while helping retain and attract talent.
Various open source protocols focus on real-time payments with differences in their approaches, smartcontract size and roadmaps. Some are light and simple, others are more complex and composable. You should just choose the solution that best meets your needs if you wish to start streaming your crypto payments in real-time. I can help you compare and make an informed decision. Based on my research, there is a real-time payment solution which currently has more use cases than other players’, and shows great potential for more innovations. @Superfluid is an open-source smart contract framework on EVM networks that lets you wrap any ERC20 into a SuperToken (or directly create one) with new capabilities.
Here are some developments and innovations I am particularly excited about:
Financial services in real-time
Automated Investment & Optimal Dollar-Cost Averaging (DCA)
An individual or organization could allocate a portion of their revenue to the multiple assets of their portfolio in real-time – thus ensuring the most efficient dollar-cost averaging possible.
Lending in Streams
Both repayment and borrowing could be done in streams, which offers a way to repay a loan automatically and allowing credit to be collected gradually against the collateral.
Streaming Insurance Premium Payment
Instead of recurring payments to renew your insurance policy, you could subscribe to insurance coverage as long as you stream the premium it requires.
Streaming Perpetual Options
Similarly to the insurance use case, option buyers can have access to their option rights as long as their premium payment is being streamed.
On-Chain Tradeable Cashflow Assets
By pointing streams to an NFT, the holder of the NFT would receive the money and be able to transfer it! The stream would automatically cancel the address of the previous NFT owner and start streaming to the new one. Here NFTs could represent an employment position or the ownership of stock dividends.
Marketing and Community incentives
Gradual Social Token
The community members would receive an NFT and, as long as they hold it, they would receive rewards. This enables stronger loyalty and discourages dumping the privilege-bearing NFT.
Proportional Redistribution
Each participant is rewarded based on their progress towards a specific target. This use case is interesting for marketing campaigns (e.g. metric being # likes or impressions) and collaboration activity (e.g. #of commits and #tickets resolved).
There are many other use cases in gaming, marketing and financial services that I haven’t mentioned here. Plus there are many more possible applications yet to discover when it comes to real-time finance. Let me know if interested to find out more.
I keep exploring the promises of programmable money every day, as I’m convinced they will greatly impact marketing, finance, community management and gaming. Aren’t you? Thanks for any feedback!
Share if you like this post, and follow me for more info and new ideas related to #money #payments #power #streaming #crypto #cryptocurrencies #blockchain #opensource #web3 #FinTech
https://twitter.com/Marc__Vlad
Sources:
Payments are discrete units sent and received in monthly chunks, and captured by accountants in monthly/quarterly reports. Why? Simply because money is contained in banking and accounting systems that have always worked on such time scales. But, money is fluid, in a continuous stream of cash, flowing in and out. So why aren’t we using a real-time medium to process money transfers?
For Andreas M. Antonopoulos, one of the best educators in the open blockchain technologies space, the implications of real-time accounting and finance will take "fifteen years" to comprehend and will revolutionize peer-to-peer, corporate and nation-state payments. Now, only 5 years after this statement was made, real-time finance is in full thrust. Thanks to blockchains, "programmable money" has been enabled, and cash management capabilities unleashed. We can now perform automated accounting with effective settlements at every block, replacing payroll departments, payroll processors and unlocking new possibilities to innovate personal and institutional finance.
So, what happens when we start streaming money in real-time?
Payroll in real-time is possible
We are working in real-time. Why aren’t we being paid in real-time too? Enabled by crypto, getting paid in real-time will be a game changer for both employers and employees. As the pay comes while the work is getting done, teams and contributors can receive the money they’ve earned whenever they want. Thus, they are better equipped to deal with unexpected costs and have full flexibility in managing their funds.
For employers and their Finance/HR departments, the advantage is frictionless cost-effective administration of recurring payments to one or multiple individuals in a single transaction (setting up a stream and its receiving wallets). They can also onboard new employees faster by swiftly adding their wallets to the stream, or remove any at any time by revoking a wallet or by stopping a stream and getting back the funds that were yet to be streamed. Streaming money grows mutual employer/employee trust, empowers and motivates teams while helping retain and attract talent.
Various open source protocols focus on real-time payments with differences in their approaches, smartcontract size and roadmaps. Some are light and simple, others are more complex and composable. You should just choose the solution that best meets your needs if you wish to start streaming your crypto payments in real-time. I can help you compare and make an informed decision. Based on my research, there is a real-time payment solution which currently has more use cases than other players’, and shows great potential for more innovations. @Superfluid is an open-source smart contract framework on EVM networks that lets you wrap any ERC20 into a SuperToken (or directly create one) with new capabilities.
Here are some developments and innovations I am particularly excited about:
Financial services in real-time
Automated Investment & Optimal Dollar-Cost Averaging (DCA)
An individual or organization could allocate a portion of their revenue to the multiple assets of their portfolio in real-time – thus ensuring the most efficient dollar-cost averaging possible.
Lending in Streams
Both repayment and borrowing could be done in streams, which offers a way to repay a loan automatically and allowing credit to be collected gradually against the collateral.
Streaming Insurance Premium Payment
Instead of recurring payments to renew your insurance policy, you could subscribe to insurance coverage as long as you stream the premium it requires.
Streaming Perpetual Options
Similarly to the insurance use case, option buyers can have access to their option rights as long as their premium payment is being streamed.
On-Chain Tradeable Cashflow Assets
By pointing streams to an NFT, the holder of the NFT would receive the money and be able to transfer it! The stream would automatically cancel the address of the previous NFT owner and start streaming to the new one. Here NFTs could represent an employment position or the ownership of stock dividends.
Marketing and Community incentives
Gradual Social Token
The community members would receive an NFT and, as long as they hold it, they would receive rewards. This enables stronger loyalty and discourages dumping the privilege-bearing NFT.
Proportional Redistribution
Each participant is rewarded based on their progress towards a specific target. This use case is interesting for marketing campaigns (e.g. metric being # likes or impressions) and collaboration activity (e.g. #of commits and #tickets resolved).
There are many other use cases in gaming, marketing and financial services that I haven’t mentioned here. Plus there are many more possible applications yet to discover when it comes to real-time finance. Let me know if interested to find out more.
I keep exploring the promises of programmable money every day, as I’m convinced they will greatly impact marketing, finance, community management and gaming. Aren’t you? Thanks for any feedback!
Share if you like this post, and follow me for more info and new ideas related to #money #payments #power #streaming #crypto #cryptocurrencies #blockchain #opensource #web3 #FinTech
https://twitter.com/Marc__Vlad
Sources:
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