xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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There are certainly regulations coming to crypto, but what regulations and how far do regulations apply?
There are many possibilities that regulations of crypto can go very wrong, and let me explain here:
Crypto is a peer-to-peer communication device that facilitates the transaction from one user to another without the third party's involvement.
In the traditional sense of transaction, we have a client or seller deal with a user or buyer with a middleman to facilitate communication or transaction, likely an institutional financial service provider like Visa through credit card service, PayPal through fintech service, debit card as banking service or cash through "trust" of banknote.
Regulations are heavily applied to intermediaries since they facilitate transactions involving financial information and private information protected through other regulations.
Now, we are back to crypto.
If you are using centralized crypto services such as Coinbase, there is nothing different than the middleman regulations case.
This is important that if we assume, crypto payment is nothing deviate from cash payment, credit card payment, fintech payment, or debit card payment.
If the above assumption is correct, why do we need crypto regulations on the payment system?
So regulations are expanding beyond payment transactions such as unsecured investment assets like Defi and other functionality provided through Web3.
It started to get tricky here.
What power up the core of Defi, Web3, DApps, and many more is a protocol that can create smart contracts.
You see where I am going. Regulations can restrict ways smart contracts function, types of financial instruments that allow them to offer, and provide protections to users or even restrict on the protocol.
The worst case of regulation is to restrict a protocol.
What is a protocol?
A protocol is a ground rule of communication that is preset for both parties to communicate on.
Regulating a protocol is like regulating an operating system such as a Windows platform or iOS in Apple.
Rather the regulations should apply to applications on the platform such as DApps an example.
Regulating a protocol will kill the possibilities of the crypto space and push the technology backward.
Therefore, no regulations on a protocol.
Support the writer here or join Medium here
Photo by Joshua Woroniecki on Unsplash
There are certainly regulations coming to crypto, but what regulations and how far do regulations apply?
There are many possibilities that regulations of crypto can go very wrong, and let me explain here:
Crypto is a peer-to-peer communication device that facilitates the transaction from one user to another without the third party's involvement.
In the traditional sense of transaction, we have a client or seller deal with a user or buyer with a middleman to facilitate communication or transaction, likely an institutional financial service provider like Visa through credit card service, PayPal through fintech service, debit card as banking service or cash through "trust" of banknote.
Regulations are heavily applied to intermediaries since they facilitate transactions involving financial information and private information protected through other regulations.
Now, we are back to crypto.
If you are using centralized crypto services such as Coinbase, there is nothing different than the middleman regulations case.
This is important that if we assume, crypto payment is nothing deviate from cash payment, credit card payment, fintech payment, or debit card payment.
If the above assumption is correct, why do we need crypto regulations on the payment system?
So regulations are expanding beyond payment transactions such as unsecured investment assets like Defi and other functionality provided through Web3.
It started to get tricky here.
What power up the core of Defi, Web3, DApps, and many more is a protocol that can create smart contracts.
You see where I am going. Regulations can restrict ways smart contracts function, types of financial instruments that allow them to offer, and provide protections to users or even restrict on the protocol.
The worst case of regulation is to restrict a protocol.
What is a protocol?
A protocol is a ground rule of communication that is preset for both parties to communicate on.
Regulating a protocol is like regulating an operating system such as a Windows platform or iOS in Apple.
Rather the regulations should apply to applications on the platform such as DApps an example.
Regulating a protocol will kill the possibilities of the crypto space and push the technology backward.
Therefore, no regulations on a protocol.
Support the writer here or join Medium here
Photo by Joshua Woroniecki on Unsplash
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