Author | David Schwartz
Translator | evening rain Zebian | Xu Veyron
Source | Babbitt Information
Cover pay to download in the East IC
Editor's note:
Author: David Schwartz (software engineer); Translator: evening rain; source: Babbitt information; herein, represents the honor of personal views and do not represent the position of the block chain base camp, which is intended to deliver more market information and does not constitute any investment advice.
Ethernet Square on the change of financial Like the Internet has changed the data. Therefore, Ethernet Square will become the last decade risk-adjusted best return on investment.
Ethernet Square is the first license-free (permission-less) of the global economy. For those who are new to this ecosystem, simply, Ethernet Square is an economic body. Ethernet currency (ETH) is the currency of this economy. Is a borderless nature of the etheric Square "digital state", which is the code of governance, everyone in the world are in this country, "citizen." Any person anywhere in the world can write code that Ethernet Square, logic-based automation to provide services, such as bank account numbers, financial exchanges, lending platform, and deploy it on an Ethernet Square.
Ethernet code on the Square is auditable, and will always run according to the coding rules; anyone can networked world can access Ethernet Square service, and without the consent of the third party's permission. The creation of the global financial Ethernet Square had a significant impact. The current legal tender, such as the dollar and the euro, due to its nature-based license, so there is a systemic problem. By increasing global trade and settlement trust and efficiency, Ethernet Square has become the world's best economy.
Many investors are concerned about the encryption market, they still remember when the ICO prosperity, although the prevalence of fraud in that field and prosperity, but for those projects not purely speculative basis, their high valuations. A few years later, it is clear that the Ethernet currency is likely in the next cycle with the fundamentals rather than speculation and growth. We will explore the ETH mechanisms behind the prices in this article and why ETH possible price surge over the next decade to draw our conclusions.
The current global "permission-based" economy
Economy is built on a series of transactions based on trust. The global economy is the sum of all transactions within and between countries and nations. In each country / region (eg USA) within the transaction are added to form a collection of gross domestic product (GDP). If there is no trust between the parties, the transaction will be very small, so that the machine economic stagnation.
Governments issue legal tender in order to promote trade and use of complex legal system to enforce the rules as well as differences between two or more parties to arbitration. The main responsibility of the government by maintaining low unemployment, minimum wage and ensure monetary stability to manage the welfare of citizens, so that citizens can use their income to buy (foreign or domestic) of goods and services required for their lives.
To achieve these goals, the government uses sophisticated technology infrastructure and human capital system to support its legal tender. Today, these systems are often deployed by the government can achieve online transactions, credit card cash and in-kind payments, and those who attempt to carry out financial fraud or counterfeit currency, it could face imprisonment and threats of violence.
Government management of these technologies not only money behind, also manages the currency issue. They can and do print the money they want. However, they need to be careful not to print too much, otherwise it will lead to inflation or the loss of trust in the global financial markets, which led to rapid increases in prices of goods and services. It will flourish in the country to maintain low inflation, while maintaining low unemployment and high quality work.
Government management of its financial infrastructure by Permission based system. Government granted licenses to banks, and allow banks access to technology companies (Visa, PayPal, Venmo, Plaid), and then authorize other companies or users to access their applications or API, and so on. In each level, this permission is used to control the economy, enforce the Prevention of Money Laundering and KYC rules. Government began to view and perform all operations from the top.
Existing licensing systems lack financial innovation
Vital to national government permission-based system, to ensure that there is confidence in the economy. However, it does have a negative impact, because the government has the ability to examine any application of non-compliance with its rules.
For payment networks such as Visa, many are legal tender greater financial market determined exchange rate to support. This makes it easier for citizens of all countries, travel, and to achieve a healthy global economy. However, in order to provide these services, Visa required to license its network every government / country.
In addition, in order to create financial products, companies must pay expensive legal fees, to ensure compliance with regulatory requirements and can operate. Companies must pay these costs in the country / region in which they operate, and to ensure that they comply with the latest laws and requirements. These high costs can protect citizens from fraud, but at the cost of innovation, and rent-seekers can obtain financing. Rent-seekers by increasing the share of existing wealth rather than creating new wealth reduces economic efficiency.
No significant capital investment is almost impossible to create new and innovative startups to compete with Visa and other existing businesses. For anyone who can not get a lot of capital, the requirement to obtain government approval based on multiple licenses and the cost of capital is too high with the interaction.
"Trusted" platform
Due to the high barriers to entry, it is difficult to compete with them, thus allowing large financial companies to charge monopoly protection money, and from making a fortune. Despite these advantages / profits, but Wells Fargo Bank (Wells Fargo) and other companies are still engaged in illegal activities, it has only recently been fined $ 3 billion. Wells Fargo unknowingly creates millions of new accounts for existing customers, giving these customers bring unexpected costs.
Consumer confidence in them "trusted" institutions are not always guaranteed. These companies have no problem in the current situation, but by the user and can develop better product developers to charge high fees should not be complacent.
Unfortunately, due to the nature-based license and high barriers to entry, only a small part of the population to innovate in the financial industry. You may have a team of talented developers composed of, but if you do not have the track record, or do not live in a country with a strong network of venture capitalists, or did not attend prestigious universities, you are less likely in financial terms of innovation, as compared with those companies without a lot of capital, small likelihood of success.
And various retail and newspaper industry, the financial industry has never experienced the destruction brought by the Internet. What we need is a reliable platform for anyone. You do not need a lot of money to find rent-seekers and overly complex legal system. Here there is a large number of built by developers and researchers a viable alternative to unlicensed: Add Ethernet Square.
Ethernet Square: Innovation Platform
Ethernet Square economies are not subject to any third party controlled network of national / regional economies, the user can be assured that any code placed in their systems will always be performed in coding. Square Ethernet is used by developers to provide new and innovative tools to people around the world self-sovereignty products, including, but not limited to, bank accounts, exchanges, exchange-traded funds, derivatives, lottery systems, gambling sites, virtual reality world , game programs and digital collections.
Ethernet Square has two main advantages in the fight against the nation-state economies and their products. First of all, Ethernet unlicensed Square, Second, compared with the traditional banking system, it has a more efficient technology. Different from the people involved in the settlement process, all Ethernet Square is automated. Having said that, most of the transitional government and the Bank is currently using similar techniques Ethernet Square block chain, such as JP Morgan's Quorum, which is a permission-based, slightly modified version of Ethernet Square. Therefore, with the use of fusion technology to improve efficiency between countries, it is no licensing the Ethernet Square truly innovative economy.
Ethernet Square is an open financial system. This is a powerful engine for innovation. Anyone with an Internet connection can develop in the etheric Square service or access these services, no one can stop or review. A group of savvy developers are working to build better financial services. Like the Internet has changed the way data flows, like Ethernet Square will change the way money.
Early attraction
Now, using Ethernet Square, you can have a stable currency, the currency can track the value of the dollar, the currency trading or consumption of, and access to about 8% interest (unheard of in today's economy), can take advantage of the interest participate in innovative products, such as non-destructive lotteries or donations to charity, and your principal balance has not yet affected. From sports to politics to share the results, you will soon be able to get investment opportunities for almost everything, and the cost is very low. The list of possibilities is growing.
We are now in 2020, Ethernet Square still in its infancy. Developers are exploring network effects, interactive user interface and Ethernet Square products are innovative.
A major problem facing the use of Ethernet Square self-sovereignty and private management of ecosystems. The private key is a very long password, the user can access the funds and expertise needed to properly store and use. However, to create a new wallet advanced encryption technology multi-party computation (MPC) such as is using the technology to everyday users and account availability, ease of recovery greatly improved.
In addition to improvements to the current 1.x Square Ethernet technology, Ethernet Square upcoming release 2.0, and completely change the field to provide sufficient throughput for Ethernet Square, making it the de facto world economy, global settlement layer. With the government and banks to migrate to other blocks and Quorum chain technology, Ethernet Square will be at the center.
Network effects
Ethernet Square has a huge network effects. Any innovative single developer Square on the Ethernet can be used by all other developers. If a developer creates a protocol (such as interest-bearing bank account), all other developers can use this protocol in their applications, and no one can stop them. They do not have to seek their permission. Therefore, whenever an Ethernet Square on a new innovation occurs, it will exponentially grow the ecosystem.
Other platforms other than Ethernet Square are not interested in these network effects and the developers. Many venture capital firms to put money into trying to beat those opponents Ethernet Square, these similar platform is almost never necessary. These projects take time to disappear, because they have a lot of money, but they are just empty block chain. Ethernet Square is so far the only truly attractive platform.
Ethernet bullish Square
We have discussed the reasons that developers can choose to develop in the etheric Square, as well as how to prepare the platform for the massive wave of innovation, but how this will be reflected in the price?
In the next decade, the main driver of ETH prices had five. Each of these factors can be attributed to reduced supply or increased demand, thus driving prices up.
1.Staking
Staking (tokens mortgage) is used as collateral and provide good security for users by locking tokens to protect Square Ethernet network process. If a mortgagor acting in good faith, they will be rewarded. Otherwise, they will be punished by a mechanism called cuts.
It is estimated that due to the mortgage, currently in the amount of about 110 million ETH circulation as many as 3 million tokens will be locked and removed from circulation supply. Ethernet Square Staking currently expected to be launched in 2020 July 30, but if the safety test indicate the need to make additional changes, then Staking may be delayed.
Other offers Staking of block chain is locked share more. For example, as of now, Tezos has secured tokens of the total supply of 77.65 percent, but the reason why higher, because in addition to the hype rarely used Tezos tokens. As we will soon see, Ethernet Square is a powerful ecosystem, a large number of applications contention ETH as collateral, thereby reducing the funds available for mortgage.
2. End mining
The miners from the system permanently withdrawn for Staking, which will reduce the supply of new ETH, and occur within the next year or so after Staking will be implemented initially. A short duration after the on-line 2.0 square ether, mining and Staking will exist. It protects the block chain network through mining techniques, but can generate new ETH as a reward for miners.
Mining circulation is much higher than the circulation Staking abandon mining will greatly reduce the amount of new supply. When mining is expected to stop, there will be a mechanism to burn transaction fees paid to offset Staking Ethernet Square and total circulation is negative, thereby increasing scarcity.
3. Application of Collateral
Many innovative applications on Ethernet ETH Square needs to be locked collateral to function properly. For example, MakerDAO is a project to create a stable currency DAI, DAI can track the current dollar prices. There are a number of complex mechanisms, but is ETH DAI collateral. ETH stable synthetic nature of the DAI. Another form of ETH, reliable and can be used as payment for goods and services. ETH used as collateral even if the price fell from $ 1428 US dollars 83, DAI remained stable, which is a powerful system.
Only through the development of business and allow more users to buy and lock ETH to create a more stable tokens, MakerDAO will reduce the supply of money available for Ethernet. There are many applications rely ETH / DAI and compete for this scarce resource. With the launch of more projects expected demand for Ethernet Square will increase dramatically, and more and more supply will be locked in these services.
Value over time locked in the application of the ETH: defipulse.com
4.gas costs
ETH pay for gas on the network. 2019 Square Ethernet average daily gas cost of $ 95,000. With the 2.0 release of Ethernet increases Square and throughput, as well as more developers to develop in the etheric Square, is expected to pay the total amount of gas will increase significantly, forcing the user and / or purchase ETH for service.
5. Speculation
Finally, we will see pure speculation, in all financial markets, especially in high-growth high-tech industry, this situation is prevalent. As we have seen in 2017, the bull market encryption currency could lead to staggering price increases. When the user has a real product and protocol to be used, what will happen next. They need to invest in false promises, and experience the power of open financial system.
For more information about the economics of Ethernet Square, here are some good article, including more details on this topic: "ETH reserve assets", "ETH: New Model of Money" and "trillions of dollars ETH use cases . "
in conclusion
From 10 years from now, millions of developers will work strictly in the 2020s to create a new open financial system in the etheric Square, replace the existing financial markets and exchanges, and create new products that we can not imagine, like Facebook, at the beginning of the birth of the Internet, Amazon, and Google is also difficult to understand. Ethernet Square outside the financial sector will also have use cases, such as creating a better voting system, decentralized social networks, decentralized cloud computing, and this application list is still growing. stay tuned. Exciting time.
This article does not represent any financial or tax advice. This article was strictly speaking educational, not buy or sell any assets or make any investment advice financial decisions. This is not tax advice, if necessary, please talk to your accountant. Do your own research.
original:
https://medium.com/@davidschwartz_34333/2020s-the-rise-of-ethereum-a01a19f806d8
* This article represents only the author do not necessarily represent the official position of the block chain stronghold.
"Force plan [the second quarter] - learning ability Challenge" started!
From now until March 21, must flow to support the original author, the exclusive [more] medal waiting for you to challenge
Recommended Reading
We seek in the old iron look! ????
