Musings on Cryptoassets


Blockchain is going to change many things that we are used to do in traditional ways that many people find it difficult to grasp the magnitude of revolution that blockchain is bringing.


Some areas where the change has already begun include:


Lending & Borrowing: Lending and borrowing, which is the backbone of banks and financial institutions is going to be shifted onchain. MakerDao is the pioneer of this field. There are many other projects that are emulating the breakthrough of MakerDao.

Payments: No need to hold govt issued depreciating currency. There are multiple alternatives that include Bitcoin (with lightening)and fiat stablecoins (like Tether, USDC), and algorithmic Stablecoins (like DAI and UST).

Exchanges: All digital assets that are native to blockchain can be exchanged on-chain so the business of all financial intermediaries related to exchanges are going to be affected. Uniswap is the leader of this area that pioneered the successful implementation of Automated Market Maker (AMM) model proposed bi Vitalik.

Investment banking: Through STOs and ICOs funds can be raised for innovative ideas without the help of investment bankers.

Synthetic assets: All things under the sun can be tokenized and be traded on blockchain. Like you can have exposure to Tesla shares without actually owning tesla shares in the real world. Synthetix is the leader of this revolution followed by Mirror Protocol.

Equity tokenization: All equities can be tokenized on blockchain so the traditional intermediaries related to this will be potentially eliminated.

NFTs: All content creators would create their digital content on blockchain and may directly monetize their assets. The current crypto boom is mainly driven by this heightened interest in NFTs like generative arts, music, video, gaming metaverse etc.
The above are just some easily digestible areas otherwise too many innovations are being experimented in this area on a daily basis.

Decentralized Autonomous organizations (DAOs): Imagine working for a company that does not have a CEO and does not have its office address. This is already happening.

The good thing is that unlike internet and computing revolution, this is going to affect and snatch the businesses of large internet landlords and corporate giants instead of peripheral workers.

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