"Its the economy stupid".........(1992 Bill Clinton Presidential Campaign)
Blockchain technology is known today because of platforms like Bitcoin, which enable the peer-to-peer transfer of assets. On more advanced blockchains, like Ethereum, you can transfer assets, create other forms of assets, and also record votes as a point of coordination.
While many see Bitcoin as a store of value, most see Ethereum as a platform for launching new cryptocurrencies and decentralized applications.
Use cases of Blockchain (Ethereum)
Smart contracts and dApps: A smart contract could reward a musician when a music dApp plays their song or grant a loan to someone using crypto as collateral in a decentralized finance (DeFi) protocol.
Tokenize anything: Blockchain (Ethereum) allows users to create their own unique, non-fungible tokens (NFTs) that can represent anything from virtual assets to real-world commodities. Users can then trade these tokens or use them to power other decentralized applications.
Create a new currency: Blockchain (Ethereum) lets anyone create their own cryptocurrency with a few lines of code. For example, USD StableCoin (USDC) runs on Ethereum.
Transaction fees. When you send an Ethereum-based token or use the network, you pay transaction fees in ETH.
Individuals will gravitate towards options that give them more flexibility or value. So a currency that is accepted universally and preserves purchasing power will always be chosen over one that is limited to a region and prone to devaluation.
If regulation does not keep up with innovation, many will start having parallel financial lives.
Scenerio 1:
Ngozi wants to rent a flat for N5mm - she says to the estate agent;
Femi, I will pay you N2mm in naira and N3mm in stablecoins.
The Owner is happy - He only books N2mm in revenue and a lower tax bill but he also
has stablecoins that he can deploy to pay his Chinese supplier.
This is how a shadow system will be built up over time.
Payment infrastructure will soon be built that is powered by crypto with the complexity hidden from the user.
Scenerio 2:
Compare sending money to 0x23463959CFeC064f5e5aE68FB9bf5735D204d12 ( A blockchain address)- even if you copy and paste, there is no bank to verify if you make a mistake, the funds are simply lost.
But now you can send Ethereum to femi.eth and it will get delivered
Increased cross-border payments.
Scenerio 3:
You want to pay your Chinese supplier in $.
Your local currency will first be converted into USD then yuan. So you suffer transaction costs twice. Then the bank will put a fee on this.
Now you can send your Chinese supplier stablecoins (USDT)
1 USDT is instantly changeable for $1 via crypto-exchanges.
Every day, SMEs and individuals are making this choice not because they are economic saboteurs but because using stablecoins makes their life easier, and opens up opportunities that didn’t exist before.
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