You Probably Didn’t Know # 3: Crypto Finance 2020

Everyone has seen how the internet has changed our lives. And investments in Internet technology over the past few decades have resulted in products and services that are used by billions of people today, including messaging, video conferencing, e-commerce, and more. Venture capitalists know it is important to continue investing in the long-term growth of the internet to meet the needs of decades to come. One of the markets that could revolutionize in the coming decades and that is expected by many investors is the cryptocurrency market.

Below are some highlighted focus areas that everyone should be aware of.

1. The next generation of payments

The payment system we use today was developed more than half a century ago, and the way we transfer and distribute value today still needs to be improved a lot. Fast and affordable real-time value transfer without the need for a third party. Imagine how we are now transferring data such as e-mails or photos, it will soon be technically possible on a larger scale.

2. Store of value

Today’s consumers, especially local users who currently live in places with volatile currencies, want a store of value that meets criteria such as scarcity, safety and security, safe, sustainable, portable and censorship resistant. Even those who live in stable economies are increasingly skeptical of the government’s ability to manage the money supply. Gold has long served as a fiat alternative, but Bitcoin is a digital alternative that is gaining acceptance and popularity around the world.

3. Decentralized finance

DeFi is a new group of financial services with the main configuration applied such as borrowing, lending, derivatives, insurance, trading, crowdfunding and many more applications based on blockchain. It encompasses many of the core values ​​of an open internet, including:

first) open access for everyone in the world
2) Commitment to open source code for everyone
3) Expandability
4) minimal to free
5) Maximum encrypted security and privacy.

4. Innovative new business model

Many new business models have been invented throughout the history of the Internet, including banner advertising, search advertising, video advertising, in-app payments, and digital subscriptions. Each new business model that was created helped fund and increase a new source of income for the people who created and developed it.

And do you think that the next wave of internet business models will come from cryptocurrencies?

5. Web 3

One of the main reasons the Internet has become such a powerful invention is that it is largely software based and that new networks can also be created. Originally networks based on open protocols such as email and the web. Company networks such as Facebook, Twitter and Uber have emerged in the last few decades.

The companies that own the network have independent power over important issues such as: B. who gets access to the network, how the turnover is divided, which functions are supported, how user data is secured etc. create tensions in the interest of the often decoupled business from the interests of those who depend on the network, including users, developers, companies and new content creators.

Blockchains enable the creation of decentralized networks with a strong commitment to “don’t be angry”. Do you understand this saying?

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I introduced everyone to the basics that cryptocurrency and blockchain can do in the future. Below is a roundup of some companies’ fundraising rounds in the crypto market this year:

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by Crap – Synthetic team