Great read – Highly recommended!
“The protocols behind these new fiat-backed digital coins will, for example, create digital scarcity, meaning that, like cryptocurrencies, they can function as a de facto form of cash or bearer instrument. That’s quite different from the bank-issued IOUs of our current payments system. Also, they’ll essentially be programmable, which when combined with smart contracts and wallet-enabled internet-of-things (IoT) devices will transform the world’s commerce.
If digital fiat currencies become commonplace for payments, they’ll eventually remove banks for that core function of economic exchange. Also, if coin-to-coin atomic swaps and smart contract-based escrow solutions are used in cross-border transactions, the rise of digital fiat might quickly spell the end of the dollar’s dominance of global trade, with profound implications for the United States.
The upshot of all this is that central banks will initially acquire even more direct control over monetary conditions. However, they will do so within a digitized environment in which no single currency enjoys global hegemonic dominance and in which users can more easily move in and out of state, private or decentralized currencies of their choosing. That increased currency competition should, in theory, impose a constraint on each sovereign’s capacity to debase their citizens’ money.
We face a paradigm shift, in other words.”
“1. Smart-contract insurance
2. Bonding curves
3. Wallet user-experience”
See Also: Into The Ether #100 – Good chat with Ethereum ‘Influencers’ (video)
“Safeguarding the MKR token contract has historically been the responsibility of the Maker Foundation. The plan from day one has been to transfer MKR token control to Maker governance shortly after the launch of Multi-Collateral Dai (MCD). With MCD released and the Protocol functioning as expected, the transfer of authority has now been scheduled.
Beginning on December 20, control of MKR token will be handed to the contracts, and therefore to the governance community, in steps as we continue on the path to decentralization. The Foundation will share control of the token with the contracts for about one month to ensure a successful handover. After that time, MKR token holders will be given full control, meaning that decentralized governance will be the only avenue for changing MKR token authorizations.”
“Right now there’s a chance there won’t be enough liquidity in the network to support the transaction, especially for larger payments. Multi-part payments tackle this problem by making it possible to break a payment into smaller pieces that are easier to send across the network. Notably, while this release supports sending these types of payments, it still isn’t possible to receive them.
Decker claims the code change also “greatly increases” the resiliency of the entire payment network. Since users sending payments are less likely to have to transact with a large node, that’s a ‘single point of failure.'”
“A team of researchers claims that the prototype silicon chip that they developed enables encryption that is impossible to break.
The system envisioned by the researchers is based on the idea of a one-time pad (OTP). OTPs are famous because they cannot be cracked, but require sharing one-time use keys the same size or longer than the data being sent before it is sent. The chip developed by the researchers tries to make a practical OTP implementation.”