Ecosystem

This article discusses the idea of InstantBeta projects. As a guideline, the article will explain important facts about the purpose and existence of Cryptocurrency Ecosystems. 
Thousands of Defi, NFT, Web3, and similar projects, already used by a significant part of the worldwide population, are paving the way to the new era of the global economy, where the balance of power could or will significantly change.
The author will try to justify the thesis: "The cryptocurrency-supported projects (business models) where people's everyday activities, like employment, educating, shopping, traveling, entertaining, etc., could effectively use the advantages of new (blockchain) technologies and bring an overall better quality of life to all included only when they are hosted in a dedicated Cryptocurrencies Ecosystems, separate and parallel but open to mainstream global economy environments - and not vice-versa".

 

The concept of a mainstream, global economy


Who controls the global economy?


Many people think the governments of the world's largest economies control the global economy, but this is a common misconception.

Although governments hold power over countries' economies, big banks and large corporations control and fund these governments; large financial institutions dominate the global economy.


How does the global economy work?


Understanding the global economy and its functioning can be explained through one word —transactions. International transactions between top economies in the world are enabling and maintaining the continuance of the global economy. These transactions mainly comprise trade taking place between different countries. International trade includes the exchange of a variety of products between countries. It ranges from fruits and foods to natural oil and weapons.

 

Cryptocurrencies


Cryptocurrency is decentralized digital money based on blockchain technology and secured by cryptography. To understand cryptocurrency, one must first understand three terminologies – blockchain, decentralization, and cryptography. 

In simple words, blockchain, in the context of cryptocurrency, is a digital ledger whose access is distributed among authorized users. This ledger records transactions related to various assets, like money, house, or intellectual property. 

The access is shared and distributed between its users, and any information shared is transparent, immediate, and "immutable". Immutable means anything blockchain records are there for good and cannot be modified or tampered with – even by an administrator.

Centralized money is our regular money, governed by authorities like the Reserve Bank of India. Decentralization in cryptocurrency means no similar authority can be held responsible for supervising the rise and fall of a particular cryptocurrency. This has many benefits over centralized money. 

Some of these benefits include the following:
  • There is no need for currency owners to "trust" a single governing entity, as everyone in the network can access the same information that cannot be altered.
  • Data remains accessible only to network users, and it is heavily secured. Shared ownership also means all users sign off on the accuracy of the data, which means there is little scope for data mismanagement or miscommunication. Think of it as a democracy.
  • Security is a fundamental part of a blockchain. 

Cryptography is the method that secures data from unauthorized access by the use of encryption techniques. Most of the claims that blockchain makes, like privacy and immutability, are enabled through cryptography. 

The roots of cryptocurrency technology can be traced back to the 1980s with the invention of a "blinding algorithm". The algorithm is all about secure and immutable digital transactions. It remains fundamental to the modern-day digital currency. 

In 2008, a group of people (currently known under the pseudonym Satoshi Nakamoto) created the guiding principles of the first and leading cryptocurrency in the market today, Bitcoin. In 2009, Bitcoin was launched to the world. But it would be years before it was formally recognized as a means of payment among leading merchants, starting with WordPress in 2012.

The underlying blockchain technology is today used in banking, insurance, and other business sectors. Growing at a compounded annual growth rate of 12.8% since 2021, the cryptocurrency market is estimated to reach $4.94 billion by 2030, thanks to the need to improve the efficiency of today's payment systems, rise in global remittances, and the increased need to secure data.
 


Cryptocurrency ecosystems take different approaches.

The cryptocurrency market is flourishing in the global financial market with thousands of cryptocurrencies. Blockchain technology has reached a milestone where every industry wants to benefit from its decentralized and transparent nature. With blockchain being implemented across almost every sector, demand for blockchain protocols is at its peak.

Understanding the rapid growth of blockchain platforms, many blockchain development companies have started R & D on emerging blockchain protocols to build a better blockchain ecosystem. From the list of top blockchain protocols based on their ecosystem, technology stack, and solutions they offer, the significant players are Stellar, Polkadot, Ethereum, Tron, EOS, Binance Smart Chain, Cardano, Solana, Polygon, etc.


What is the primary use of cryptocurrency?

A cryptocurrency is a virtual or digital currency that can be used to buy goods and services, which implies there's no physical coin or bill used, and all the transactions take place online. It uses an online ledger with strong cryptography to ensure that online transactions are completely secure.


How are cryptocurrencies used in everyday life?

You can buy cryptocurrency with fiat money on cryptocurrency exchanges. All transactions are managed and operated using a cryptocurrency wallet. You can use any wallet compatible with the cryptocurrency you choose to use. A growing list of online retailers and brick-and-mortar stores accept cryptocurrency as payment.


How to Pay with Cryptocurrency?

One of the primary reasons cryptocurrencies were developed was to be used as anonymous payments. This reason is often lost in the hype by media outlets and the financial sector, which are focused on prices going up and down. Prices are important, but knowing how to pay with cryptocurrency is more important because it is gaining so much traction and popularity.


Pros and Cons of Paying with Cryptocurrency

Pros:

  • Anonymity/Pseudonymity: Because cryptocurrency is decentralized and user information is not required, it is anonymous. This allows you to conduct your financial matters without scrutiny by authorities or others that might pry for various reasons. However, some will argue that cryptocurrency is pseudonymous because your wallet address can be used to identify you if you ever allow that information to be accessible.
  • Peer-to-Peer: Cryptocurrency is designed to be peer-to-peer, reducing the need for third-party involvement. You can send money to or receive it from anyone without other services.
  • Fewer Fees: Many financial services charge fees to you or the business you're shopping at for allowing you to use your money to make or receive payments. Cryptocurrency's peer-to-peer nature allows for fewer fees; you can think of this as a lower cost for all parties involved in a transaction.
  • Pay from Anywhere: Cryptocurrency lets you make or receive payment anywhere you have a connection to the internet.
  • Available to Everyone: Many people need quick access, or any at all, to financial services like banks and loans. However, most have internet connections through mobile devices. This allows everyone to make and receive payments, make or receive loans, or access financial services wherever they are.

Cons:

  • Transaction Fees: Although fewer fees are involved in cryptocurrency transactions, you'll need to pay transaction fees to the cryptocurrency network. In the past, these were minor, but they have been rising. Most cryptocurrency developers and communities are working to solve this issue, but fees have gotten high. For example, at one point, one Bitcoin transaction fee was more than $51, but it has come down to hover between $1 and $2—still high, but much less than previous fees.2
  • Price Volatility: It's no secret that cryptocurrency prices are volatile. This means that your cryptocurrency's value will change over time. Your cryptocurrency's price can drop between the timestamp when you purchase an item with it and the time the network approves the transaction—causing you not to have sent enough to pay for the item. Conversely, you might send too much if prices rose during that time.
  • Not Regulated: Another well-known aspect of cryptocurrencies is that they are not regulated, backed, or guaranteed. This means you may not have any recourse for getting your money back if you get scammed or the exchange you store your keys at goes out of business.
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  • Not Reversible: Once an exchange is completed, it is locked into the blockchain and cannot be undone. The only way to get money back if there was an error or mistake is to have the recipient voluntarily send back what they owe in another transaction.
  • Risk of Loss: As with other forms of currency, you can lose your cryptocurrency. You're responsible for the private keys that give you access to your money; if you lose them, there is no way to get them back. In addition to losing your keys, you can lose money if you hold your cryptocurrency and prices fall.


The conclusion


Considering the above facts and knowledge, we can conclude some imminent facts from the viewing point of InstantBeta projects. Tokenized business models, where people's everyday activities are supported and enabled by a dedicated cryptocurrency, should and could operate in a dedicated Cryptocurrency Ecosystem. Governance of such an ecosystem is mainly provided by a consensus on a global state, by and consensus algorithm. The identity of that ecosystem ensures publicity, transparency, immutability, decentralization, and trustless trust. Participants are in control of their assets, with total freedom, and they own authority.


The challenge is how we could integrate such an ecosystem into the mainstream economy, where the distribution and circulation of goods and services, labor flow, transactions, and entrepreneurship are governed and legalized based on totally different principles and practices and united into national government taxation systems. Who determines interest rates, exchange rates, and cryptocurrency supplies if there is no central authority?


Geton Ecosystem

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