Intro Crypto

Intro Crypto .

Analog to Digital



Digital money is a direct equivalent of cash across the same currency.

Currencies are usually issued by Central Banks, and backed by order of a Government ;backed by FIAT.

Transactions in an economic system are stored in a central ledger.


Cryptocurrencies store transactions in an online distributed ledger known as the blockchain.

You can buy and sell with Cryptocurrencies just like you do with cards ( digital dollars or naira), but that's where the similarities end. 

How so ?


Think of cash becoming money easily spent or transferred online through cards. That is  digitization . We can also derive insights from the process, by rewinding to earlier examples of digitization .


From : envelopes 

To : email

Various use cases were created as user behavior changed with the transition to a new medium of computers.

Let’s go over them one after another.

What changed a little ?

What changed a lot ?

What new possibilities were created from this change in form ?


NEW USE

Email served as the gateway to online experience.

Signing up on the email provider site created a personalized address and also became a means of signing up for web services on websites such as commerce (ebay), bookstores (amazon), online forums, and other website examples till date.


User Behaviour

chat rooms and other forms of instant messaging changed the speed at which  information passed - the feedback loop was shortened. This was the precursor to a lot of new applications.


These new possibilities are the case in point of digital transformation.

From : fiat currencies

To : Cryptocurrencies

 Digital fiat issued currencies, have also been transformed with the invention of Cryptocurrencies, starting thirteen years ago with Bitcoin.


Mail to email was digital transformation. 

From cash to card, money went digital (useful beyond its physical form).

With cryptocurrencies , transaction authenticators are redundant; no need for middlemen . Central missing, verification and control can become obsolete .

NEW USE

By signing up on a website (just like email ) you can create a wallet, and make transfers directly between site users.

This cancelled middleman is crucial, as the primary interface in commerce has usually been two parties exchanging cash across the counter, or a third party confirming digital credentials of tendered payment as valid.

That third party usually involved complex transfers (and commissions) between banks, credit card issuing companies, and payment processors.

Simplifying transactions  is the beginning of a long list of use cases and then user behavioral changes we will explore, that will lead to useful tools such as  evaluating utility in new cryptocurrencies.



  

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