Why blockchain is not a fair game and what do you need to know to play it?
To understand what our financial games are like and what is so special about them, we decided to decompose in detail the essence of what we are developing, and we will start with the general problem that we see in modern blockchain.
In the beginning, there was Bitcoin by Satoshi Nakamoto, and it was good.
But what’s next? Unregulated, not giving any actual usability, except for a complex and often not working analog of the real financial systems; altcoins — that was created at the dawn of our cryptocurrency world. Yes, the infrastructure that provided their existence was new and unusual. In many ways, its novelty made this entourage of uniqueness and a growing desire in the masses to join. But as soon as the initial flair passed, the question arose, what else is the blockchain capable of?
Vitalik Buterin answered this question with his Ethereum. A fundamentally new vision of both cryptocurrencies and contractual relations — that’s what the new blockchain gave the world, and it was akin to creating a religion after leaving the gardens of Eden.
Ethereum gave the world a new entity — smart contracts, which were not new in essence but completely unique in their execution. Things just got crazy out here…
A new era began.
One could say that the creation of Bitcoin was its beginning, but it was more like a prophecy that came true in the functionality of Ethereum. Smart contracts have become a new milestone in the history of mankind and its financial systems. I would like this change also to affect the contractual, legal part of the world order, as required by the plan, but as it turned out, the economy part is still quite enough.
Smart contracts have changed the blockchain. And they were good.
But what, in fact, did they give to the community? Have the poor get richer and the rich more reserved? Are the countries of the world united under the jurisdiction of immutable network contracts, the terms of which are not affected by corruption, threats, or jury bribery? Or perhaps the world has realized that the world market economy, like price formation, together with inflation, is nothing more than a politically controlled bubble, whose primary role is only to keep the masses in check? Alas, smart contracts gave the world only a slightly more elegant regulation of financial flows and a new way to form a market offering, nothing more. So far.
Smart contracts carry a huge functionality, the potential of which will only be revealed in the future. But for blockchain and cryptocurrencies to become firmly integrated into the everyday life of ordinary inhabitants of the planet, alas, many more years will pass. Yes, several companies are already trying to build integrations with cryptocurrencies, trying to produce something unique, but their offers usually have a high entry threshold and are often inaccessible to the public.
So what is blockchain at this point? What does it consist of, and what do smart contracts form at the beginning of 2022?
To summarize, from a technological point of view, smart contracts at the moment are nothing more than a pipeline that provides the efficient transportation of conditional monetary units within the network. Why conditional? Just because anything is worth nothing in the blockchain. Not NFT, not any token is known to you, not even His Majesty Bitcoin. All this costs absolutely nothing until you pay for it the money backed by the gold reserve of some country. It turns out that cryptocurrencies are also supported by gold? Haha, of course not. Tokens are not a currency. Tokens are a commodity.
The price of a product in the ordinary world is influenced by a million factors, starting with the weather conditions at the time of the harvest ending with the mood of a store employee gluing discount stickers on price tags. In the blockchain, the price of absolutely any token depends on the persons who own the largest volume of it.
This is a fact that is important to realize.
Nothing affects the price of a cryptocurrency more than the situational desire of its largest hodler to buy a bigger yacht. You can pin your faith to the idea of a living market economy in the blockchain for as long as you like. But if you know the mechanism of creating the liquidity of tokens, then guessing the price of a token according to its chart is just like a sketch from a Monty Python show for you.
Smart contracts create rules for managing tokens within the network. They do not form its value and do not produce anything new. These are just a set of rules written in lines of code that allow users to participate in the finite cycle. And all this is needed only so that at somewhen, someone can cash out these tokens and make money on the price difference.
And that’s it.
Blockchain at the moment does not give the world anything innovative, except for a new market of opportunities to earn money. And as it usually happens, those who play unfairly earn the most. But how actually correct is this statement?
What does the word “fair” even mean in terms of blockchain?
Blockchain does not produce any money. Blockchain does not create anything. All the funds that move into the network got there from outside, from our real world. And when you deposit $1 into the blockchain and withdraw $100 from it, you must understand one simple truth: someone lost $99.
The gold reserve of cryptocurrencies is real money. Cryptocurrencies are valued in relation to the dollar, bought and sold in relation to the dollar, and the dollars that provide the value of the conditional crypto-unit were entered into the blockchain by someone. This means that when you “earn” in the blockchain, in fact, you take someone’s money from the common piggy bank. It’s that simple. That’s how it works.
So what is “fair” within the blockchain? What are the conditions for cryptocurrency honesty?
That is simple.
Honesty is when everything is transparent and understandable. The liquidity of any token is a store of funds deposited into it by token hodlers. By purchasing a token, you put money into a piggy bank. By selling a token — you take the money out.
A simple example: if ten people throw $10 into the treasury, then for nine people to earn $1.1 each, one of them must lose everything. That’s how liquidity works. There’s nothing fair or not fair here; it’s just a fact.
This means that the problem of blockchain projects is not in the “honesty” of the distribution of funds between hodlers, but in transparent conditions, the functionality of using project tokens, and, most importantly, in the duration of all of the above.
If the project is not interesting and under the bright label of “gamechanging” breakthrough, there is simple staking or, worse, an NFT marketplace, its liquidity will be eaten up very quickly, and all marketing epicness will sink into oblivion. Therefore, in addition to transparency and functionality, something is needed to allow all this to live and develop for as long as it is generally possible within the blockchain framework.
And this is where we enter the market.
We did not create our project to collect more money and get rich instantly; we are creating a platform that will allow each market participant to get what they want from the blockchain as a whole — within one window.
Ordinary users will get a chance to participate in simple games with absolutely transparent conditions and the highest chances of winning. Owners of small projects will create an additional turnover of their tokens, preventing them from prematurely “going rancid”. And large projects and metaverses will receive an extra service to their ecosystem, with all the following benefits.
We don’t talk about breakthroughs, and we don’t shout about technology that will change the world. We are doing a project that at this stage only solves several problems, allowing the community to realize their goals within our ecosystem without being scattered and without unnecessary risks.
How will we do it? Stay with us, and we will tell you everything.
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