Maker Minds #14 —We are back, and stronger... The use of Blockchain.
Hey!
I'm Tony. It’s been a while. Five years ago, I had zero knowledge about crypto. So, I started exploring the web day and night to find answers to my questions.
Every Monday, I share whatever helpful information I come across with you, explaining it in the simplest way possible.
To put it simply, I make crypto easy to grasp. And if you're here, it means you're an early Web3 adopter!
In the Summary:
💎 State of the Market.
🧐 Understanding the use of Blockchain in our world.
State of the Market:
Bitcoin: $30,683
Ethereum: $1,923
Solana: $19
Gold: $1,936
S&P 500: $4,455
How is crypto changing the world?
And what if, when asked why you're learning about crypto, instead of answering "to make money" (even though that's true too)...
You replied: because it's changing our world!
🔮 The Blockchain... you're not quite sure what it is anymore?
Off the top of my head, I see four phases of transformation brought about by the Blockchain. I say off the top of my head because, you know, I'm not a crypto historian.
Phase 1:
Initially, the Blockchain was just an online application for recording cryptocurrency transactions. It's like a mega ledger of ownership. We can all see what's written on it but can't modify it. Secure like a bank but transparent, you know?
I send you 1 Bitcoin. It's recorded in the Bitcoin Blockchain that I have one less Bitcoin and you have one more. Straightforward, easy.
That was already a major revolution.
But some guys took it even further.
Phase 2:
One day, a guy says to his friend:
Now we can do away with banks to create and exchange money. But what if we went even further? What if we created a blockchain that could record anything inside it?
His friend: Uh, what do you mean?
The guy: Well, anything. Like anyone can write code. And that code becomes an application. We record it on a Blockchain. And the thing works autonomously. Without intermediaries.
His friend: Got it! So basically, you want us to develop a program that executes automatically when the contract's conditions are met. And we can record it on a Blockchain.
The guy: Yes! And I want to call them Smart Contracts. Like they did to say a phone is smart. You know, smartphones.
His friend: Okay. So we create a new language to develop these autonomous applications. Let's call it Solidity. Because it's solid.
That blockchain is Ethereum.
It allows the registration of these famous Smart Contracts written in Solidity. And these Smart Contracts allow the creation of fully autonomous applications called DApps (decentralized applications).
🌎 But how does it change the world again?
Well, you understand that when Ethereum was created in 2015, it allowed tons of projects to emerge in the crypto space. They could use Smart Contracts to create applications and crypto that are on the Ethereum Blockchain.
That marks the beginning of Phase 3.
I admit, Phase 3 doesn't change our world just yet.
Phase 3:
Many projects were created with the aim of inventing a whole ecosystem related to the Blockchain.
To simplify:
The goal was to lay the foundations of a new world. Involving mainly people who see the value of recording things on the Blockchain, even when there was nothing.
So, they had to create:
Decentralized websites to buy cryptocurrencies. And exchange them.
Decentralized applications to store them. Cryptocurrency wallets, you know (also called Wallets).
Websites for crypto lending. Which led to the creation of platforms where you can deposit your crypto and earn yields.
That's when we enter what's called decentralized finance (DeFi). But as it developed, Phase 4 emerged.
Phase 4:
Now, the foundations of the crypto universe are firmly established. People who have been in this space for a while are all rich.
So what happens next? Well, they mostly want to change the world.
They realize that the advent of crypto won't happen by staying among themselves. The logical next step is for the general public (you and me) to understand the value of it.
But how do you make people understand?
Well, you offer applications that leverage the advantages of Blockchain to improve our daily lives.
This phase is where decentralized applications start competing with centralized ones.
So, let me explain what it allows and what it will allow.
🍀 The philosophy:
But the central element in all of this is that:
Introducing the concept of recording things on the Blockchain and creating projects with their own crypto.
It realigns everyone's interests.
Now, I'm going to simplify a lot:
We're moving away from a society where the only ones who truly benefit from a project's growth are the founders and shareholders.
Yes, when you use Amazon for deliveries, you enrich the shareholders and founders.
But what about you, as a user of the service? Do you get anything for ordering from them? Are you rewarded when the company grows? Even if you order every day and recommend it to all your friends?
Very little. At best, you get a small reduction in shipping fees.
And what about the company's employees? When it grows, do they get rewarded? Sure, they have a job. But apart from that? Do they receive bonuses that align with the company's growth? For everyone? Well, no, all of that is subject to the laws of traditional management.
So, introducing Blockchain and crypto allows for something.
When you help a project grow:
Because you imagined it.
Because you invested in it.
Because you worked every day to make it exist.
Because you're a customer.
Because you recommend it to your friends.
In any case, you will own the project's crypto. So when it grows, you win. Depending on your investment in time, money, or commitment. There's no one of the three that gets rewarded more.
Concrete examples:
Thanks to the blockchain, you can already:
Buy a property with crypto, without involving a notary.
Who takes 5% and 3 weeks to respond.Own what you create on the web: with NFTs.
So, you can go on social networks where the content you produce truly belongs to you (so it can't be deleted for you).
But soon, you could:
Automate inheritance processes.
Which currently take months or years of waiting and are painful.Systematize compensations for flight or train delays. Currently, you're entitled to compensation. Yes, if you have the patience to call customer service, provide a million documents, and wait for three weeks. With Blockchain, it becomes automatic and instantaneous.
Remain solely on organ transplant waiting lists.
If you need an organ transplant, you're placed on a list. Except if you're rich or powerful... you can jump ahead. If we record everyone's position on the Blockchain, it will be impossible to falsify.
Do you see? Simple innit?
From next week (Monday), we will get back to sending the usual crypto market news and insights!
Cheers,
Tony.
Click here to connect on Twitter.
Have a nice week!