Deconstruct CryptoCurrency: Finding The Real Impacts
Introduction
I’ve been thinking of this topic since a long ago when I was thinking of the “real use case” of this technological movement. When I joined this industry (cryptocurrency or web3) as a software engineer, trying to explore all technology things including exploring each of the selected network’s codebases such as Polkadot, Solanaand NEAR, and of course the EVM things.
If I looked at it from the technology perspective, everything looks great, and even some people say that the technology itself is aTechnology Marvel .
History
From the beginning, anything that relates to cryptocurrency will always be about the financial or money things, and these are the only products in this industry. There are some types of projects in this industry:
Protocol Network Layer
L1 Network, examples:SolanaorNEARL2 Network, examples:OptimismorArbitrumorPolygon
Exchanges
DEX (Decentralized Exchanges)CEX (Centralized Exchanges)
DeFi (Decentralized Finance)
It’s almost like DEX , but this concept has more broadly features
- Lending
- Borrowing
- Trading
- Investing
This concept is more like a “bank” but without any centralized entity or actor.
The Impacts
You can do almost whatever you want in cryptocurrency as long as your idea or project relates with FinTech (Financial Technology) or DeFi (Decentralized Finance) . All of these projects is the real implementation of use case that available now in cryptocurrency industry.
The question is what is the impact? The definition of “impacts” will be different between people. For people outside of this industry maybe they don’t understand the “impact”, but for the people that living their life in cryptocurrency, well all of these project may have the “impact”.
If the technology itself is a “Technology Marvel” like some people said that, is it possible to building any ideas on top of crypto networks? The answer now is possible, like these projects
All of those projects try to build a “decentralized social networks” that run on top of Ethereum network, and those projects are really interesting, at least for me.
Then I’m start to curious:
Is it possible to give more impacts even to the community outside of our industry? To the people that even doesn’t have their wallets? Make people from
Web2to move toWeb3even without they knowing it.
Deconstruct
I’m trying to deconstruct the concept behind the cryptocurrency into simple multiple building blocks.
There are three basic building blocks
- The CryptoCurrency
- The DLT (Distributed Ledger Technology)
- The Foundation (peer-to-peer network and decentralized/distributed entworks)
As I’ve said before, the cryptocurrency is about the financial and money things, although we’re able to build the decentralized social network on top of it, but unfortunately, it’s not the nature characteristic of cryptocurrency itself.
It’s not just the social network, but also other cases such as file sharing, decentralized nodes/api/rpc, and others. I’ve been following for a long time the true nature of people in cryptocurrency, whatever the project or the use cases, what they care is just about the token’s price. Still a lot of speculators or even gamblers in this industry, the bad news is, this group is the most loudest group in the industry.
The good news, it’s still has a group of people that still believe in the vision of decentralized power, peer-to-peer communication, open source, software idelogies, that want to give more impacts through the software especially their network protocol, although, the number of people at this group is smaller than the speculators (very small).
By deconstructing into three building blocks. I’ve been thinking, actually we can contribute, build and even integrate, with or without the cryptocurrency, which means, I’ve seen some of projects that something like forcing to be “compatible” or “support” or “build-on-top” of cryptocurrency, which is, I think it should not be like that.
Imagine a project like this:
Rather than forcing us to build something only on top of some of cryptocurrency networks, we’re split our architecture blocks into several components outside of cryptocurrency.
Like I’ve said before that everything about cryptocurrency is just about the money, but equipped with excellent technology tools like peer-2-peer networks. So I’ve been thinking that, it will be nice to deconstruct the technology building blocks into smaller part and then use those parts based on our needs, no need to forcing us building anything on top of cryptocurrency network.
By splitting the effort and also the architecture, I’m thinking that it should be give us a more higher impacts, since our solution should not be limited again from the cryptocurrency limits, like a gas fees, and something like that.
