I envision a future where the conversion of value/assets is as efficient as the access to information is today. Decades ago it would have been impossible to imagine having an unlimited access to information by your fingertips. This is today a reality by billions of people around the world with the use of smart phones.
It is almost impossible to imagine a world without the internet today. You could make the argument that information is today more or less “free” for the first time in human history, for a large share of the world population. This is something we take for granted but as of today, the transfer + conversion of value/assets is not free.
A few private mega banks are today the oligarchs of the large value flows around the planet. They are the mega libraries of value, that charge you for the books. They make hundreds of Billions of dollars each year for these services, so they wish for the status quo to continue. “A level playing field” is not in their best interest.
A level playing field is in the interest of the world citizen who wish to be able to send value anywhere in the world at almost no cost, instantly. The same goes for the conversion of assets or to access new forms of lending and borrowing where there is no middle man to take a large part of the cake. Technology to make this future a reality already exist. The oligarchs are trying to hold on to their power. It will be up to the lawmakers to decide the future.
Nobody wants to pay high fees, unless they’re forced to.
The use case of all use cases
If you really think about it, the use case of all use cases should then be obvious. At the heart of everything will be the transfer of value as well as the conversion of any asset/currency. Send money from your smart phone wallet to any wallet in the world with instant currency conversion. Convert any asset you digitally hold to any other currency/asset instantly. The same goes for any business, bank, FI etc. Value flowing/converting instantly with no friction.
There will be many different use cases for crypto but they will all rely on the project(s) providing true interoperability. They remove the friction, cost & instability at the heart of the current financial system and democratizes finance.
This should then create a massive demand for the project(s) providing the interoperability by acting as the hub all value has to flow/be converted through. Most of us are aware of the global RTGS system the company Ripple is trying to build with the interledger protocol & the global bridge asset XRP at the center of it all. As you can see in the below picture, liquidity is thickened by all currency conversions happening through XRP.
A growing number of people are also aware of Quant who wish to provide the broadest level of interoperability possible by the use of its operating system Overledger. Key will also be the ability to build decentralized multi-chain applications (mdapps) that can make use of several different blockchains/DLTs in the same dapp. They also wish to easily connect to legacy systems, to bridge the old world with the new.
I don’t believe there will be many winners in the interoperability race. Reason being that adoption of this type of global infrastructure should end with just a couple of different systems, otherwise you would add inefficiencies as well as making a global bridge asset less liquid, if more than one is used.
The conclusion should be that the interoperability solution(s) should likely drive more demand than any other project/coin since all value would have to be converted, transported through it. By simple math, this should be true.
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