Recently, someone asked me what is the most interesting function of the securities pass. The author's answer is only one word: programmability. The author firmly believes that programmability is the key to the future development of securities pass, and truly separates encrypted securities from previous financial industry activities. However, implementing programmability in cryptographic securities is no easy task. In the past, the author has written some general ideas about achieving this goal. This article is intended to discuss more tangible steps that can improve the programmability of the current wave of securities pass-through platforms.
Marginal Improvement Theory in Technical Movement
The team of venture capital giant Andreessen-Horowitz proposed a theory on the development of technology markets, which I believe applies to securities passes. They believe that, with the exception of a few features, the first phase of breakthrough technology tends to be even worse in almost every respect, compared to previously mature technologies. Many minor improvements are the basis for unlocking the value of new technology. I like to call it the theory of marginal improvement.
To illustrate this marginal improvement theory, let's cite an example of the evolution of mobile applications. In the early days of the smartphone era, you can prove that smartphones are worse than PCs in all respects (battery life, screen size, applications), but they have been improved in two small areas: cameras and GPS. These two features unleash the economics of mobile applications and create adoption levels that are orders of magnitude more than PCs. Similarly, in the development of big data, emerging technologies like Hadoop are considered to be worse than relational databases in almost every respect, but it has a feature: they can perform scalable computing on large unstructured data sets. This single function ensures the necessity of the entire industry.
Extending the marginal improvement theory to the securities pass, we can prove that encrypted securities are worse than traditional securities in many factors, such as disclosure, liquidity, market making, secondary trading, and so on. However, the securities pass did make a small improvement: programmability.
The intelligent, programmable interface represents the true direction of the securities pass. Programmability enables new forms of securities that were previously unimaginable. From this perspective, the platform that invests the most in the programmable interface is likely to seize the market. However, achieving effective programmability in a securities pass can lead to very complex work. So far, the securities pass industry is not attractive to the developer community, so enabling a programmable interface may sound like a solution to the problem. For the securities pass platform, programmability needs to start at a very basic level.
Baby toddler, moving towards securities pass programmability
The idea of programmability in cryptographic securities can lead us to the creation of an unmanned open protocol rabbit hole (a metaphor into an unknown world). In addition, the author wants to solve this problem in the context of a simple question: "What will developers do now with the securities pass?". In my opinion, this question needs to be answered in three main aspects that constitute the main stage of the securities pass life cycle:
· Issuance : How do developers write a securities pass contract?
· Post – launch activities : How do developers interact with issued securities passes?
· Activities on the chain after the release : How do other blockchain agreements use the securities pass?
Release stage: DSL for securities pass
The programmability of the securities pass issuance phase should be fundamentally focused on simplifying the creation of smart securities for encrypted securities. Currently, the process requires the use of specialized smart contract languages such as Solidity to write smart contracts. In the previous article, the author proposed a higher level of domain specific language (DSL) concept, which can abstract the basic building blocks of some securities pass smart contracts. The DSL model will allow developers who are not Solidity to model the securities pass contract while still maintaining a complex level of programmability.
From the perspective of all options for improving programmability during the securities pass release phase, the DSL model seems to be one of the most practical models. In emerging markets, the securities pass agreement still represents a high threshold for culture and technology for most developers. Eliminating some friction seems to be the most practical step to improve the programmability of cryptographic securities.
Post-release chain stage: integration with developers-friendly protocols
The easiest way to improve the programmability of a securities pass is to combine it with a developer-friendly and widely used blockchain protocol. The integration with the Ethereum agreement will enable hundreds of thousands of developers to enter the new world of securities pass. In a large number of Ethereum network protocols, the author believes that there are three main categories that can improve the programmability of securities passes in the short term:
· Stable currency : Integration with a stable currency agreement such as MakerDAO provides a programmable model to unlock the dividend payout potential in the securities pass.
Decentralized exchanges : There are many development activities around the decentralized exchange agreement. Integrating the securities pass compliance model with protocols such as 0x, Kyber Network or AirSwap can open the door to new exchange models in encrypted securities and challenge traditional methods.
Derivatives and Token Baskets : The idea of combining a securities pass into other forms of encrypted securities is an interesting programmable form. Protocols like SET have gained great appeal in the developer community. While the entire derivatives sector is promising for securities passes, the combinable token basket seems to be the most basic available in this space. Integrating securities passes with protocols such as SET can create new forms of encrypted securities, which seems to be a good mechanism to simplify industry programmability.
The above are some initial functions that can be used to programify the securities pass in the near future. The subjectivity of cryptographic securities is both broad and complex, so focusing on key areas that provide developers with immediate value is critical to the development of programmable securities.