I wrote the below article when I first entered the crypto world. Post it to remind myself never to forget why I started.
The invention of new tech is always thrilling cuz it brings countless possibilities. Technology is objective while how ppl use it will probably change the world and have a huge influence on human beings. But it takes time, and it always takes longer than ppl would imagine according to history. So I think ppl who have true passion but not hustle are who this new field needs.
In the early stage of web3 powered by blockchain technology, I’m fascinated by lots of true innovations and applications. The top three love :
- DeFi: blockchain could help lower the cost of verification so we could skip central institutions if the process includes tracking, settling, and enforcing contracts. The most common use case is in the financial industry and we could see the alternative solution for currency(BTC, Algorithm stablecoin), banks (p2p lending and borrowing — Compound, AAVE), brokers (AMM — DEX), insurance (Nexus)…As an employee in the FIG sector in an international bank, I see how this innovation benefits individual players by just removing license requirements in the system.
- The token economy: The token economy nested in each project not only serves as a pre-fund opportunity but also could be an incentive mechanism during the operating phase. I think we still have a long way to go to prove the efficiency regarding the token economy, but I love its underlying monetary economy and interacting dynamic relationships.
- True ownership: NFT is a great concept for ownership in the digital world. And with encryption and blockchain, we could truly protect our digital property from being stolen or plundered (if u know how to keep ur private key). But in the current stage, NFT is still a representative of membership and whatever is related to meme ….
Just as I said at the very beginning of this writing, the new tech gives ppl hope for a brand new world so it’s fascinating. But if we try to be rational and focus on the present, I still think there’s a long way towards decentralization. So maybe now a nice balance combining decentralization and centralization could work best. For example, my fav stablecoin Frax is backed by a balanced USDC and FXS. And big centralized institutions (CEX, VC, hedge fund) are currently good for the sector development.
I always ask myself why I like crypto so much. Deep down, I’d rather believe in computer than trust ppl for building the fundamental layer for currency system and ownership structure. Ppl always think a great deal of themselves but we only exist for 0.003% of the age of the earth, and we have 96% exact same gene as gorillas :)
Also, I do believe the distributed network and distributed organization form are what the Age needs. If we back to human history, the underlying assumption in Industrial Age (still this age) is “economy of scale”, that’s why we have big companies and big countries/ governments, just to expand the scale to save cost. However, if we look at where we stand now, lots of digital nomads, one-person start-ups, and small-sized companies could produce customized products and services anywhere via the internet, and customized products are the future needs instead of massive production by large companies. Also, with encryption and blockchain technology, ppl have natural protection of their private wealth, which will destroy the existence of protection providers (big governments). Hopefully, decentralization is the future, powered by individual intelligence maximization.
