Stabilizing coins and Layer 1 era
Former Bitcoin core developer Jeff Garzik previously said that stable currency will push DeFi into the next era. “As far as products are concerned, we are in an iterative state.” Garzik said at the Consensus 2019 conference in New York earlier this year that he attended the conference last year as the chief architect of the cryptocurrency project Metronome (MET). “Stabilizing coins will continue to exist and people are growing and growing.” Stabilizing coins are a form of cryptocurrency assets that attempt to eliminate common cryptocurrencies by linking them to the value of legal currency, exchange commodities, and commodities (such as precious metals). Huge price fluctuations.
"The next milestone in the field of cryptocurrencies will be that all DeFi products (loans, credits, etc.) are built on top of the stable coins based on Layer 2, while the Layer 2 stables are built on things like Metronome or Bitcoin. "The above is the Layer 1 cryptocurrency ," said Garzik, who is also the CEO of Bloq, a Chicago-based bitcoin company that is providing blockchain technology to businesses.
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“You don’t use Bitcoin to make a mortgage loan guarantee, which is a kind of 'financial suicide' for both the mortgagor and the mortgager. But you can do it with a stable currency.” Garzik said, “ Once you have a stable cryptocurrency, you can start creating loan products, credit products, 30-year mortgages, dividend-paying products, etc. It will open up a huge world."
Stabilizing coins are built on cryptocurrencies such as Bitcoin, and this layering feature shapes the security and stability of stable coins. “Assuming you have unstable assets like MET or BTC as collateral, you can put $150 worth of unstable collateral in a smart contract, then it will issue a $100 dollar-linked stable currency. A brand new world, because the price of cryptocurrency such as Bitcoin and Ethereum has fluctuated."
Garzik said that although the stable currency has relative "success and survivability", in general, the blockchain industry is still in the early stage, the Layer 1 era. “10 years have passed, we are still in the era of 'I am building a blockchain', and DeFi is the first use case of 'I am building on the blockchain.' It is built on the underlying infrastructure, that is Ordinary users do not need to understand or consider the underlying architecture and can work properly."
Garzik said that there are still several steps to go in order for ordinary users to safely use blockchain products. “The layout is big, but it’s still too early.”
Bitcoin still plays a vital role
As a member of the Linux Foundation, Garzik further stated that Bitcoin is still of the utmost importance today because it is simpler and easier to protect than other blockchains. He also seems to think that this may lead to personal epiphany. "Bitcoin is like taking a red pill in Matrix (Editor's note: The bridge from the movie "The Matrix", meaning the human awakening), which will bring explosive growth of knowledge and become an entry point for the entire cryptocurrency industry. Once you start using Bitcoin, you'll start to understand the entire blockchain, DeFi and shandianwangluo protocols."
“In terms of economics, Bitcoin is the most powerful chain. Bitcoin is the foundation of the blockchain network. So if I want to build projects pragmatically and rationally, I want to build on the strongest chain. Bitcoin The blockchain will make my project safer, easier to analyze, and easier to build with the appropriate security software."
According to Garzik, Bitcoin is the first cryptocurrency available for payment and as a mobile asset. But the flexibility of Bitcoin is not enough to achieve certain goals, especially in the enterprise. “If I want to build a fully decentralized ETF to manage 20 assets like the Standard & Poor's 500 Index, Bitcoin can't do it for me.” Editor's Note: ETF is a tracking “target index” change, and in securities. A fund that is traded on the exchange.)
Garzik said the company's bitcoin trial is still in its early stages. "Most people look for Tendermint or Hyperledger when choosing a private blockchain to get more use cases for smart contracts, supply chains and provenance types." To illustrate the advantages of Bitcoin, Garzik mentioned a global financial services company, BNY. Mellon, the company has previously conducted a bitcoin trial.
Suresh Kumar, chief information officer at BNY Mellon, told The Wall Street Journal that they are working on ways to improve transaction efficiency. Arun Battu, senior developer at BNY Mellon, built an application using open source code from Bitcoin.org to run on BNY Mellon's internal network.
According to reports, the company also tested the so-called "BK coins" as a reward for the company's internal "Enterprise Accreditation Program" to reward the creation of selected software services. “If we can find an effective way, such as an internal employee recognition program, there is a great opportunity to help us better understand the potential value of the business,” Kumar said of Wall Street when it comes to blockchain. The Daily said. BK coins can be redeemed for gift cards, vouchers and other privileges.
Kumar also told The Wall Street Journal that when it comes to new technologies such as Bitcoin, people's mindsets are beginning to change. Senior developer Battu pointed out that his biggest challenge is to transition from a traditional client-server architecture to a peer-to-peer model. Garzik agrees that for many people, the transition to blockchain-based technology is not easy. Garzik said:
"Having your own key is a subversion of traditional deposit methods. But like every technology, it's a double-edged sword. It's a responsibility to have your own key. If I put a bunch of one hundred The dollar bill is stuffed under the mattress, perhaps to keep it safe, or to make it more vulnerable to theft. So, this is a new way of thinking – how to protect my key/asset?"
Bitcoin creates freedom
Bitcoin allows users to control everything and create freedom. "That is freedom of choice, freedom of movement, freedom of association, and ultimately freedom of speech." Code is a kind of remark, currency trading is the language. I have asked here that if the code is considered to be a kind of speech, then sending and receiving bitcoin may be protected by the Freedom of Speech Act. Is the transaction counted as human rights? "The answer is yes," Garzik replied. “Specifically, over the past decade, especially in the cryptocurrency industry, we have seen bank de-risking, which can be seen in the US, Australia and elsewhere.”
He believes that it is not the regulators and legislators that block blockchain-related companies. "Their what they are doing is saying, 'We don't like lawless elements', and then the bank explains what is wrong with the law. If the bank explains this, then it will take responsibility. Because if they provide banking for Osama bin Laden But without assisting in catching him, they have to take responsibility. Therefore, all banks see this as a responsibility. If there is any gray area, (they) will not worry about it at all."
Then, the bank only allows certain people to open an account. “And other people who can't open an account, from that point on, are decoupled from the monetary ecosystem. They can't even buy bread, buy shoes, be forced to beg, and be forced to disconnect themselves from society in many ways.”
He recalled how payment processors (such as VISA, MasterCard and PayPal) stopped processing payments for Wikileaks in 2013. Garzik said: "They leaked a variety of things and angered various governments that rely on banks, rely on payment processors, and then turn off the switch. For anyone who wants to support Wikileaks, the government says in a very real way. : 'I chose not to allow you to support this.' Therefore, the government is becoming a gatekeeper, deciding what support you should not support. This is completely anti-free."
He said that the potential of Bitcoin to enhance individual freedom has been clarified. “As we become more and more non-cash, it is easier for those in power to turn off the switch, not only to shut down individual organizations, but also to shut down the entire vulnerable. Some ethnic groups in urban areas are unable to obtain bank accounts in the US. This is not the first Three world countries. They had to drive to the next city because the bank decided to reduce the risk across the region (not serving them)."
Garzik believes that restricting financial services not only makes the poor lose their lives, but can also be a way of controlling speech like Wikileaks. “This is a way to control why you can support and not support it. As a result, as cashless campaigns progress, government control increases by default. The less cash you use, the easier it is to cut off. ""
However, he believes that the blockchain is shrinking – even though it may take some time.
The motivation to get up every day
Garzik said, "I believe that the blockchain is the financial autonomous layer. This is one of the two reasons why I wake up in the morning. I do believe that after all the news PR and hype, the blockchain can give people (the other 7 billion people). Take power. It will return the key you don't know to your bank account. It's very, very powerful." Garzik's other motivation is his vision for the future of science fiction. He previously said that bitcoin is the currency of artificial intelligence.
“We are building autonomous cars here and bidding for lane space on the road and similar things.” “The future of robots and humans we watched in the I, Robot movie and all other movies. The blockchain enables this Machine, I can rent something here to do things for me, maybe I can mow the lawn, and I don't have to care if it is a human or a robotic lawn mower or drone service that starts the mower. It keeps the machine network with ordinary people. Equal status."
User experience makes blockchain safe
In the end, Garzik wanted to make the blockchain easier for everyone to use, because the complex user experience reduced the security of the platform. However, this does not mean that you have to use the blockchain. “ Securitize it . This provides a secure user experience, and users don’t have to understand or understand the hashing principle. They should only need to swipe credit cards, pay bitcoin and get services. Simple user experience and simple results Will drive more people to use the blockchain, resulting in more freedom." Ultimately, Garzik said, "This is to make this rough, more primitive, technician-focused, difficult-to-use technology. Can be used by ordinary people."
Source | Forbes
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