They ask me what is the problem that blockchain technology solves, using the following false construction: What problems does blockchain solve that could not be solved before?
Teleporting to my previous article "Episode 17: DGB and WAX", this would be like asking what problems does electricity solves that could not be solved before?
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Nobody could imagine in the 19th century that electricity was going to give us, for example, computers, or the blockchain. No one could imagine 25 years ago that what was called the Internet at that time is nothing short of ridiculous by today's standards. No one can predict from now on how web 3.0 will evolve.
But if we try to answer the initial question, my first answer is that the blockchain solved a super problem that plagued all human beings equally: the middleman.
Before blockchain, we had to ask permission from a bank, from a state bureaucratic entity, from a professional registry, from a collection agency, from a government. After the blockchain, we see that none of that is necessary.
When we talk about blockchain, we talk about permissionless, censorship-resistant, trustless, and resistance to inflation. Of all these, the main one and the one that gives hope to live a world without centralized corruption is “permissionless.
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That is what the blockchain gave us that did not exist before. The previous system, cleverly designed by a corporate pyramid that deceived the world population for more than a century by relying on the word "democracy", forced us to go through all those nodes of corruption and asymmetry, in which we had to pay a toll to be able to do what we wanted to do. With the P2P concept, all of that disappears. Here is the answer.
There is also the fact of transparency in finance. That is also being given to us by the blockchain since it did not exist before. It is true that the crypto ecosystem still has flaws and vulnerabilities, as did the electricity of the early days. It is true that whales, which always existed, are present in the crypto-sphere, generating asymmetries in portfolios. But, the big difference is that now we can know what they are doing, thanks to the fact that all operations are recorded forever on the blockchain. Before this was impossible. You deposited your money in a bank, and with that money, the bank committed the maximum outrages to enrich the shareholders and the friends of the shareholders, and eventually why not also a bag of corrupt politicians, while you slept and trusted that your money was safe. This is no longer so. When a whale moves its wallet, everyone can trace its movement.
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But any intelligent person cannot be left alone with the advantages that blockchain offers in the transmission of the value. Blockchain is not just cryptocurrencies. Taking the idea that nobody could anticipate the internet from the invention of electricity, what I think is that blockchain is opening up a non-existent panorama that humanity had never known before, similar to what was the invention of electricity.
DeFi is not a digitization of traditional finance. DeFi is new and better techniques and protocols for doing finance, with an infinite possibility of inclusion. We are not computerizing the oblique trades of traditional finance, we are inventing new finance.
The generation of a new class of assets such as cryptocurrencies is already a quantum leap for humanity. But as if that weren't enough, in the panorama of opportunities that this new technology opens up, spectacular things like NFTs appear.
The world of art, sports, games, cinema, and leisure, in general, is going to change dramatically with thousands of entrepreneurs developing new products for the NFT ecosystem. In fact, there are already such a large number of them that it is difficult to imagine the size of this market. The growth is so exponential that a lot of programming time is lacking to cover the needs of the markets, the wallets, the auctions, and the interactions between the thousands of games in which you can build your own skins, your own weapons, and your own tools and then transfer them to sell or trade them in other games. Not to mention the applications that already exist to make DeFi with NFTs. The world that comes in the next few years will be worth living for those who love technological changes.
Universities that teach economics and business are not prepared, according to my criteria, to cover these changes, and they continue to cling to traditional teaching systems in terms of content and modality. At the moment, more than the addition of some courses to teach blockchain technology as an optional subject, there is currently no root change in teaching, with the dangers that this entails. It's like continuing to teach electronic engineering with the thermionic valve systems of the early 20th century. Accounting and traditional economics continue to be taught, without realizing that they are no longer useful. The transmission of value has taken a totally different highway. The new generations will never visit a retail bank, nor will they be humiliated by the fiat issuance of a central bank, nor will they be abused by the government bureaucracy. The P2P concept is a new religion. The teaching of economics and business must be redesigned in philosophical terms, contemplating a holistic vision of the cultural change that is taking place with the advent of thinking in terms of blockchain and decentralization.
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Of course, there are threats that must be taken into account. The new technology tries to leave its alpha stage to move to a more established beta state. Anyway, I prefer these threats to threats from politicians and bankers.
The main threats continue to be the bugs that are to be expected in any smart contract developed by fallible humans, the probable advent of quantum computers, which could nullify many functions of the blockchain, although developers are working hard on that by developing software that resists this new invention, and the most famous of the threats: government tax control, which sees that the police power exercised over the population is getting out of hand.
Where can we expect this latest threat to manifest itself? On exchanges. It is the only place where they can get to do something when you buy or sell cryptocurrencies. Once you have it in your wallet, not even the most powerful extraterrestrial demon that exists in the universe can take it from you. It has no access. It has no way. But before buying or selling it, we must wait for some regulatory and taxable action.
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In principle, I do not see too many problems with this, as long as we know that this is going to be provisional, because with massive acceptance, afterward all those offices will become obsolete and no government will have too many powers to handle the crypto-sphere, in which we are going to make our daily transactions with the P2P format.
The promise of traceability, inviolable registration, and elimination of intermediaries is now available to all, absolutely all industries and service activities. In fact, there are many companies that have incorporated some type of blockchain control in their processes. Many companies offer the BaaS service, Blockchain as a service to make it easier for any business to enter the new technology. There is no possibility of being outside of this technology. As 25 years ago we were told that there was no possibility of being offline, now things are similar but easier, because almost everyone has incorporated the code of computers and mobile devices.
But the worst fear may be inside you. It may be that you fear too much. And this is not responsible behavior for a time of dramatic change like the one ahead.
Sepultura, a heavy metal band from Brazil
With that said, let's move on to today's two tokens.
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Of course, you know Brave and BAT. Well, here's a competitor with a solid project.
AdEx is up against other Blockchain projects seeking to achieve similar goals, such as Bitclave, Basic Attention Token, qChain, and adChain.
In the last decade, online advertising has surpassed television advertising in revenues. This is a huge change in the advertising industry, and there is nothing to suggest that it will be reversed.
Online advertising now accounts for 40% of all advertising spend.
AdEx (ADX) is a meeting point for online advertisers and publishers where they can negotiate advertising contracts directly with the media, without intermediaries.
The project also includes a portal for users to indicate what type of ads they would like to see and manage their privacy and profile data.
With over 9 million transactions AdEx Network is currently the largest payment channel network on Ethereum.
AdEx implements a unique and custom profile creation mechanism called AdEx User Profile. Through this profile, users can control which advertisements should be delivered to them.
The ADX token is an ERC-20 token, and it is the native cryptocurrency of the AdEx platform. On the AdEx platform, ADX tokens are used to carry out transactions such as buying, selling, and offering advertising space and time. When advertisers pay for ad placement, they pay in ADX tokens.
During June-July 2017, AdEx launched its ICO and raised $ 10 million in the first three hours of the sale. A total of 100 million ADX tokens were minted, which were subsequently distributed.
Most likely, the advertising industry is the industry with the most intermediaries on the planet. Digital advertising has a well-known intermediary: Google Adwords. In general, you have to consider, marketing agencies, advertising agencies, brokers, publishers, and all charge fees for the simple service of connecting publishers and advertisers. You can't see how Adwords bid prices are calculated, and this is a major transparency flaw in the business. It is very difficult to audit the success of an advertising campaign. Clicks on ads can come from fake bots or users in order to drive revenue to malicious publishers. Users are so bombarded with advertising messages that have installed browser extensions that block the ads.
When running ads with AdEx, every impression and click on the ad is verified to make sure it is a genuine impression. AdEx audits incoming impressions, so falsely generated clicks will be punished. AdEx totally eliminates middlemen, connecting the parties directly. The result is a no-cost system where publishers can negotiate directly. Advertisers run their ads on hundreds or thousands of sites daily. AdEx gives them control over who, where, and when their ads are served.
The ADX token can also be staked, generating a very important return. The platform recently made a major upgrade to the ADX token to integrate it into DeFi's yield farming ecosystem. These reforms include staking rewards, and flash loans, ADX being the first ERC-20 to implement built-in flash loans. Early bird stakers (before August 12, 2020) have staking rewards of 200-400% APY, while the standard APY is 120%, similar to established yield farming projects.
Conclusion. The advertising business is one of the least transparent businesses in the global business arena. You never know well how an advertising campaign is paid for, what are the fees of the hundreds of operators involved and how they are calculated, how the media is hired, and who are the ones who take a good part of the business that always ends up paying the advertiser. There is an international network set up throughout the 20th century that still continues to operate in absolute darkness, in which governments and corporations intervene managing information and operating costs. I think trying to cut out intermediaries is always good, but in the case of the advertising business, it can bring down costs dramatically. Providing transparency to this business is a good start to face a decentralized world like the one that blockchain promises, in which there is very little room for miscalculated costs and for intermediaries who do not fulfill any function, but charge hefty commissions throughout the chain. In this sense, AdEx is one of the competitors that was installed in the ecosystem to provide transparency. It is not the only one and it has large competitors, but I think it will have a significant share in the short term and that the ADX token will rapidly gain market capitalization.
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Here is one of the BaaS services, blockchain as a service, which allows companies, individuals, and developers to build their own blockchain in a very short time and without the typical difficulties of building a system from scratch.
ARK is the world's most open and adaptable framework for building Blockchain applications.
The parent company, ARK Ecosystem is headquartered in Paris, France, and was founded in early 2017. The core of the team is made up of 19 members from 11 countries, giving rise not only to decentralized software but to a decentralized development team as well.
ARK uses the modified Delegated-Proof-of-Stake algorithm. It is basically a consensus mechanism in which delegates are selected to be in charge of validating the transactions. It is almost impossible for anybody to take control of the network. Each node (or computer) would have to be manipulated so that it could be "hijacked" and thus hack the chain. This increases the security and trust of users in an extremely difficult system to hack.
ARK solves the scalability problems endemic to other platforms thanks to the creation and linking of many “sidechains”. These blockchains work independently, however, they are chained and interconnected with each other through bridges called “smart bridges”.
ARK allows mining. To mine ARK you need to open a wallet account where you will save your ARK coins, which you receive in real-time after creating a new block every 8 seconds. Storing ARKs in your ledger is very important since it allows you to participate in the voting system, that is, to have the possibility of being elected to the set of 51 delegates who validate transactions and are rewarded. The more tokens you have, the more likely your election is.
You can get ARKs in some of the most popular exchanges in the world such as Bittrex, Binance, Upbit, or CoinSpot. In no case will you be able to exchange them for fiat money but for BTC, ETH, and USDT.
Conclusion. ARK is one of the right places to get blockchain solutions, open to any person. Its roadmap includes, among other things, the integration of a hypermedia protocol, the Interplanetary File System (IPFS). This represents an easy way to store multimedia files on the blockchain in the gigantic database, thus facilitating the work of developers hired by companies to implement blockchain solutions to their processes. In the coming years, all companies in the world will have to implement some type of blockchain solution in order to operate efficiently. Blockchain is the natural evolution of the internet. 25 years ago, companies that did not have an internet site were quickly obsolete compared to those that did. Then the same thing happened with mobile apps. The Internet became a set of mobile apps that replaced and/or improved the exposure of companies to consumers. Now, the natural step is to get on the web 3.0 process which stands for the decentralized web, the web-based on the blockchain. ARK and other companies offering similar services have a bright future. The developer teams will be the ones to make the difference. The market is as big as the one HTML developers faced 25 years ago when the Internet party started.
As usual, none of the things written in this post are financial advice and are not intended to replace personal research.
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