Decentralized systems are complex machines that will never be regulated or pinned down by legacy laws

If the aim never changes to let greed slide in, the concept of a decentralized financial network is so powerful it would threaten the current financial system.

A recent report has surfaced that stablecoins transactions in 2022 surpassed that of payment giants like Mastercard and PayPal, this is shocking to me personally considering that crypto is still quite infant and lacks the exposure that the companies in mention have.

Then again, we have to consider the fact that crypto is practically more flexible than both of the mentioned companies, with no sign up processes requiring this document or that document and silly accounts limits and all that, cryptographic currencies have exceedingly higher potentials over all traditional payment networks.

If we look at it closely, this kinda explains the move made by PayPal to launch a stablecoin, it seems like a good way to tap into the value flow within the cryptocurrency ecosystem, boost their volumes and ultimately their profits as a company.

I guess the assertions we had that most companies will opt to launch their own cryptocurrency stands to be true - so we could say the future is ultimately tokenized ayy?

Tokenization could rob traditional finance, with time

This post is more about decentralized financial networks than it is about stablecoins specifically, although this particular asset class will play a versatile role in the success of this ecosystem.

We are most bound by the idea that traditional finance is too big to fail, I for one don't believe that anything is too big to fail, but then again, their failing or falling isn't even what crypto is all about, but truth stands that lots of value will leave this system and lots more value that has never existed within the legacy finance system will be actualized too.

This is inevitable because we are dealing with something decentralized, meaning low central risk, something void of KYC, meaning anonymity is enforced here, and something with quite the flex on risk and reward, meaning that attaining profits is the core of all that is being built.

Tokenization will enable this in coming years regardless of what direction financial laws swing.

How do I know?

Well, for one, you can't sue a decentralized system for establishing any investment contract or product that may or may not look like security.

I'm saying this because recently, I've seen people talk about DeFi smart investments qualifying as securities and all that, and I thought of how complex this shit really is when you begin to look for who to pin it on.

I mean, sure, let's say I wrote the concept, I didn't however write the code, but even if I did, I didn't centrally enforce it, a consensus had to happen for all these things to be integrated into the network, so it quickly moved from 1 person writing the concept to thousands and potentially millions in coming years being "responsible" for these investment products being on the chain.

So when the system rises with the concept of this person is expecting a profit off the work of this person, you'd figure they can't even make this statement because the majority buying into these smart investments are basically part of the consensus protocols, so are they basically trying to scam themselves?

Because if I supported the creation of an investment contract, instead of this investment being marketing to others for me to profit, I am now the individual investing in it, I should be practically robbing myself innit?

That's right, it makes absolutely no sense. There are zero bodies to point to because each and every investor is part of the consensus protocol, so nobody is centrally pulling any strings to profit and stay off the risk zone.

As time goes on, many blockchains out there will understand the actual value of being decentralized, this is the only way to escape the claws of the establishment as you can't really jail a bunch of people setting up structures to basically scam themselves, it makes no sense.

Now understand that the use of the word "scam" here is because this is what the government terms crypto on several grounds.

Tokenization on decentralized financial networks will be an incredible force to usher in billions of crypto users, with time.

Posted Using LeoFinance Alpha