Some people embrace science and discovery. Others may not. The beauty of scientific discovery is the more you learn, the more questions you have. Nevertheless, scientists endeavour to bring clarity to the deepest mysteries of nature. In the past, some may have used astrology to question their fate. To probe the questions of life. But in the modern age we use data science to enrich our understanding of the underlying maths. Gaining a deeper insight into the nature of all things can only benefit us all.
So, let's use this scientific approach to unravel the real value of DEFI, launching our SCI-DEFI series.
Crypto: Friend or Foe?
Each one of us has heard the same, rehashed story about cryptocurrency being a bubble. How it will end shortly, right? Recently, how easy it is to sway a markets confidence with a single Tweet, you know the one. Flip-flopping from one standpoint to the other with little thought for the fallout from their words. With often, apparently, little understanding about what they are talking about each time. Speculation is nothing new. It happens a lot when a new technology is introduced. Have a look at some of the so-called doomed fads that ended up changing the world here. Each emerging technology will always have its nay sayers. It's your job as an informed individual to find out the facts.
The great Albert Einstein whom devised the Theory of General Relativity was surrounded by contemporary scientists that found it hard to accept the speed of light as the absolute limit to how fast anything can move. Moreover, Albert himself struggled to find completeness in quantum field theory. He was famously quoted as saying in reference to quantum field theory "At any rate, I am convinced that He [God] does not play dice".
A lesson can be struck from this history. Things, most often, are not what they appear. Only by observing and learning can you be sure [mostly] on what to believe. On how to progress. On how to succeed.
Talking about cryptocurrencies and blockchain tech in the same terms as classical finance is not practical. They are both in place to manage financial systems, but that's where the similarities mostly end. Much like comparing quantum string theory with Newtonian physics. Models created for completely different use cases.
We should consider whether cryptocurrencies have a future as a world financial system and what makes them so popular. A huge growth sector for cryptocurrencies is Africa, where traditional banking and financial institutions were thing on the ground and often fraudulently run or corrupt. Many African natives living in states with a national denomination with so low against the US dollar, it's worth nothing. Banking with Bitcoin or whatever is their favourite flavour crypto makes so much more sense to these hundreds of millions of people. The speed of communication has increased exponentially over the past 50 years and emerging economies in Africa and beyond, need these financial infrastructures to support their growth and journey to financial freedom.
Entropy is the scientific concept indicating a measure of uncertainty or randomness. The term and the concept are used in diverse fields, from classical thermodynamics, where it was first recognised, to the microscopic description of nature in statistical physics and to the principles of information theory. Entropy is always increasing and as it does, it brings stability to closed a system. If we are forced to participate in an ordered and non-decentralised system, we are forced to be a part or an unstable system. If we increase the entropy in the system, using DEFI, that system then becomes more stable. The DEFI system is analogous with interactions of particles of gas in a cloud of interstellar dust. They can interact with gravitational and electromagnetic forces; they are the smart contract of our cosmic blockchain. If these particles become close enough to each other, they can interact with each other's nuclear forces. A different type of smart contract for instance.
Following the physics analogy, we can determine a cosmic web comprised of interconnected, interoperable stellar blockchains. This could promise a stable market economy for participants to become a part of. Another related analogy could be that energy generated by more intense interactions of particles, could be the generation of a new born star. Lighting up the local area, connected to other stars in its own galaxy. Which, in turn are connected to other galaxies via an incomprehensibly large cosmic web. Black holes could be representative of burned assets. Ronald Coase attempted to imagine DEFI solutions in 1991.
"If there are no transactions costs to creating private agreements the levels of productions of goods will be the same no matter which party to an externality has legal right to compensation."
A popularly observed current trend in the DEFI sector is mixing both your customers and service providers together. This encourages mutually beneficial arrangements. Providing services to each other whilst sharing the same goals and values. However, each ecosystem should have key elements that allow it to remain driven and set on its goals. Cooperation and collaboration. Gravitation. Much like our earth's atmosphere, bound to its rocky, water covered safe haven in the heavens.
The ecosystems token is the element that unites all its constituent parts. It is required not only to create settlements amongst two or more parties but also to provide services such as smart contracting. Enable greater access to services globally and empower decision making by voting mechanisms built into the code of the asset.
You don't need to look for long before you are surrounded with choices about where to invest and how quick you can make big bucks. There is a player that has been overlooked for some time now. An ecosystem built by traders for traders. FLy is a newly launched token which is heavily ingrained with data science. Trading is at the heart of the FLy ecosystem. FLy has a long list of benefits which become available once you hold FLy.
• Trade signals
• Managed exchange accounts
• Trading fee rebates
• DEFI staking
This list is by no means exhaustive and the developers of this promising new asset have indicated much more is yet to come.
The ecosystem is owned by its community, it is voted upon by its community. It must serve these simple rules. Comparisons can still be drawn to our aforementioned physics analogies. Stability will come from a systems entropy.