Seriously, Your Grandma Can Use Crypto Dapps
Though I read a lot on crypto twitter and medium, I would like to brag for a moment here. I actually used two crypto apps this week. To my surprise, if you can order something on amazon prime then you can use a decentralized cryptocurrency application. Join me in trying it and I bet you, too, will feel uncharacteristically tech savvy.
Disclosures: None. I own zero Etherisc, REP/Auger Tokens. I also have zero MedCredits tokens.
Note: I like to link articles that go deeper so please click on anything underlined to deepen your knowledge.
Alright, so you might own a bitcoin or some Ethereum by now, but the more important question is: are you using a cryptocurrency?
This week I used two platforms and it was crazy easy. I loved it and now I have to share why and how it was so great!
Not so Quick Background on Blockchain:
Ethereum is a blockchain ledger that keeps track of who owns certain Ethereum much like bitcoin. Stay with me if you’re new. The value of a “currency” and the philosophy behind this is well described in other articles so I would recommend reading this one here if you are unfamiliar with what makes money actual money instead of a piece of paper or coin. If you are wondering, “Why is bitcoin worth any dollar amount at all?” then seriously go take a quick read of that. (or this)
The reason Ethereum matters here is that it is the most well known cryptocurrency currently creating a network for “apps”, like on your phone, to run useful activities. Some people like to call it Internet 3.0 since it could be the central interactive place for lots of these functions. So big picture, it could be a game changer for the biggest industries like finance, insurance, and medicine.
I learned most of this by reading examples so let’s dive in to one below.
Etherisc
Etherisc is a new insurance application and their first foray into the field is a payout if your flight is delayed 45+ minutes. As soon as you land at your destination after that nasty delay you receive your funds. Buying coverage for $250–300 is only about $20 at the current rate. So why use this new, scary cryptocurrency mumbo-jumbo insurance? Here are several immediately obvious reasons:
- Easy sign up — put in flight information for upcoming flight and the amount of payout you want if the flight is cancelled.
- Quick payout — Ethereum network usually transfers to your account in <~5min
- Guaranteed Payment — publicly available on the ledger and tied to smart contract that deploys on a decentralized platform. In other words the company that started it can’t even stop the payment if they wanted to — game changer. No comcast conversations? Darn.
- No strings attached — travel insurance contracts are long, complex, and designed to keep your money rather than to pay you.* Mostly it’s because they can and it makes them more money. It’s a for profit business so good for them, honestly. They also have lots of staff to pay and that increases their costs.
So let’s draw out the traditional to crypto model comparison a bit more but try to keep it short. Etherisc developed an interaction with the Ethereum network that allows users to do the following: (1) buy Ethereum with your dollars/euros/yen, (2) send an “email” of $10 in Ethereum to be held in cyberspace before your flight guaranteeing $300 sent to you if it is late, (3) receive email confirmation with USA/Europe licensed insurance contract.
Now two scenarios can happen: (1) flight is delayed 45+ minutes and you are paid $300 when you land for the inconvenience; (2) flight is not delayed and the $10 you put down to protect against the delay is sent to Etherisc to pay-out a less fortunate person than yourself. Some nominal fee is kept by Etherisc as well but it is super low.
All of this matters because the decentralized aspect of cryptocurrency allows for you to send money and guarantee getting a payout. It is written into the code and no one can change it. This is generally referred to as a “smart contract.” The trustless aspect of crypto basically means you don’t have to trust the person/company for you to know you will receive your end of the deal. Again, this is accomplished by the ledger system where the list of who owes what is (digitally) plastered across the public walls of thousands of computers.
Ok, so that is the gist of a nice app that runs on the blockchain. I plan to use it but I have not taken a flight lately so I will have to wait until then.
Now for the apps that are so simple my grandma could use them.
The two apps I used this week are MedCredits and Auger.
Check out my experience on MedCredits here. The overview on Augur will be published 8/25/18.
Extremely oversimplified practical use of cryptocurrencies right now:
- Store of Value + Limited use as Payment — Bitcoin
- Transfer of Value + Speculation — Ethereum (most used in ICOs)
- Speculation — Most alt coins
- Specific Payment for Specific Service— Most alt coins titled “Utility Tokens”
*Commentary of Geraldine using an old Kodak for telemedicine is a joke.