Currency of Account/Unit of Value, and the size of my …
trustless-stake, and BYOUs …
Posits 1, 2, 3 .. and 4 and 5:
1) A currency of its own is fundamental for any large enough business model’s community-protocol-platform-marketplace (cppm) because of (see below) — repeat: Every big enough online platform-community-marketplace-protocol needs its own Currency of Account. (CoA), but has choices of peg. The peg can be to basket of other cryptos, local currency, etc. depending on its purpose as per posit #3 below.
2) and it “should be” purely algorithmic (non-backed) and backed by the business model;, IOWs, the stability and backing is to be based on the value of the protocol and the community marketplace.
3) and regardless, any new or generation 2.0 stablecoin (i.e., post USDT), and must be designed for and have its specific use case and target market else fail as we are seeing in the USDC.
(Added: The crypto community probably will begrudge some 10% to 25% of the marketcap of a large enough protocol for such an algorithmic CoA (aka as stablecoin) in return for a very well-narrated story and reasonable use case. For example, a Twitter-crypto platform-based CoA could have ~$5 to $10 billion market cap to start, its free currency from the crypto-gens for Elon, to work out his crypto model.)
(Other:
4) Ideally, in addition to the SoValue, MoExchange, UoAccount, the stablecoin ought to be “spendable”. Posit: None of the current “to-moon” coins/tokens are spendable (including DAI, USDT, etc.) b/c to be spendable, to replace it, it should cost less … and none are currently. 5) And why the need to replace if spent? … because we are in/entering into the deterministic trustless-truth Staked-Era, and every man’s measure to be the size of his stakes. Tru dat!)
(GPT4) Stablecoins pegged to a local fiat currency are considered essential for several reasons:
1. Stability: The primary benefit of stablecoins is their ability to provide stability in the highly volatile cryptocurrency market. By being pegged to a local fiat currency, stablecoins are shielded from the significant price swings often seen with other cryptocurrencies such as Bitcoin or Ethereum. This stability makes them a safe store of value and a reliable medium of exchange.
3. Interoperability: Stablecoins can provide interoperability between different cryptocurrencies and blockchain networks. They can be used as a bridge, enabling users to easily move assets from one platform to another.
4. Transparency and Security: Transactions conducted using stablecoins are recorded on a blockchain, providing a high degree of transparency and security. Blockchain’s immutable and decentralized nature makes it highly resistant to fraud and manipulation.
5. Efficiency and Speed: Transactions using stablecoins can be processed quickly and efficiently, without the need for intermediaries as in the traditional banking system. This can be particularly advantageous for cross-border transactions, which can be subject to delays and high fees when conducted through conventional banking channels.
6. Economic Stability: For countries experiencing hyperinflation or economic instability, stablecoins pegged to a more stable foreign currency can provide a reliable financial refuge.
7. Integration with Decentralized Finance (DeFi): Stablecoins play a crucial role in DeFi applications, providing a stable medium of exchange for various activities such as lending, borrowing, staking, and yield farming.
8. Financial Inclusion: In regions where banking services are limited or inaccessible, stablecoins can provide an alternative financial system. Users can participate in digital transactions, savings, and even lending activities without needing a traditional bank account. This can greatly increase financial inclusion, especially in developing economies. (…okay … GPT wants: inclusion, sustainability, and equality … so, let’s give ’em that, but … can I and my children be less equal than the others if we want right?)
In conclusion, stablecoins pegged to a local fiat currency can provide a wide range of benefits, from enhancing financial stability and inclusion to increasing transaction efficiency and fostering economic stability. As such, they are increasingly seen as a must-have in today’s digital economy.
PS/ Another reason to above that GPT4 didnt see: DeFi and Real-world value transfer interoperability: Obvious.
Ref: FedNow CBDC coming to an app near you (Metal Blockchain).
-UoV (Unit of Value) 1) Stable-ness-price is a feature of the core value for such as coin. Its not the end. This is where the industry has it rong. 2) The end or core value is to be the lowest entropy UoV (?includes MoE, UoA?) for a meaningful or big-enough ecosystem, … the price-stableness to a local currency is a feature.
-Another topic: Bitcoin 1000x’d in ~10 years. If Apple, Google, et al, are each valued at ~$1~$3~$5 Trillion … and a) if the total world assets (measurable) is (only?) ~$400 Trillion (coincidently about the size of total world debt, again, measurable) and b) if Bitcoin is to be the base layer of finance for the new new world order… then Bitcoin market cap should be backed to and easily exceed several Trillion in the next cycle, even over 10 trillion.
-Oh wow. Changes, growth, etc. keep coming … Just reading about the Fed picking one of us (Metal)! (gobble gobble one of us…) … Metal targets layer 0 solutions for the trilemma … so, its “too many tech and no use-cases to go-to?” Wow, the pace of technical solutions are exponentializing… thus, this 4th cycle comes down to BYOUs, Bring your own use-case/s.
-Okay, one more: “Bitcoin will be the ultimate revenge of the nerds ….. or mathematicians? — Andreas Antonopous explains as eloquently as always how crypto will change the world: “tear down these “#2!d9$ing” walls…”
-And finally(?), for today:
Hey GPT4: If I want to have one of the three (NEAR, Hedera, Avalanche) as my application layer and the other for my consensus… which two could be a good fit:
GPT4: The selection of a blockchain protocol for your application layer and consensus layer depends on your specific needs, such as the type of application you’re building, your performance requirements, your security needs, and the level of decentralization you want.
- NEAR Protocol: NEAR is known for its developer-friendly environment, making it a strong contender for the application layer. It allows developers to write smart contracts in Rust and AssemblyScript, which can be beneficial for those already familiar with these languages.
- Hedera Hashgraph: Hedera has a unique consensus mechanism based on the hashgraph algorithm. It offers high speed and security, making it potentially suitable as a consensus layer. However, it’s worth noting that it’s a permissioned network, and thus, might not offer the level of decentralization some applications require. (Founders have stated path is to decentration.)
- Avalanche: Avalanche, with its innovative consensus mechanism, provides high throughput and quick finality. This makes it well-suited for the consensus layer. It also has flexibility in creating custom blockchains and subnets, potentially providing more flexibility at the application layer as well.
A possible pairing could be NEAR for the application layer, due to its developer-friendly features, and Avalanche for the consensus layer, due to its high performance and rapid finality. However, it’s important to note that generally, the application and consensus layers are tightly coupled in blockchain protocols, and it might not be straightforward or even possible to use one protocol for the application layer and a different one for the consensus layer. The feasibility and effectiveness of such a combination would require careful technical analysis and potentially significant development work.}
(… the moral seems to be: the 98% — dont care wont care and never will … about the consensus and will accept truth as offered — by the 2% (0.1% protocol creative “nerds” (mathematicians) and the rest being the 1.9% crypto-gens).)
